ROME-Italian insurer Assicurazioni Generali SpA said Thursday its first-quarter net profit dropped by 9% from the same period a year earlier, mainly hit by lower investment gains and higher taxes.
The Trieste-based company said its net profit for the period stood at 535 million euros ($582 million), compared with EUR588 million for the same three months of 2016.
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Generali said the profit drop was mainly due to lower realized gains of around EUR100 million, particularly in its bonds and real estate portfolio, which the insurer said was consistent with its strategy of preserving the future value of investments amid market volatility.
It also said its tax burden increased to 30.7% for the quarter from 28.5% for the same period a year earlier.
However, Generali said its operating result rose by 4% to EUR1.21 billion for the quarter, mainly lifted by its life business.
The insurer also announced it aimed to raise its assets under management to EUR500 billion by 2020, from EUR450 billion now. It said it would target a net income of EUR300 million a year from the unit, which would translate into an additional EUR150 million annual net profit for the company.
-Write to Giovanni Legorano at Giovanni.Legorano@wsj.com
(END) Dow Jones Newswires
May 11, 2017 03:36 ET (07:36 GMT)