Generali, Italy’s largest insurer, posted record profits for 2024. The company’s operating profit rose to €7.3 billion, an 8.2% increase. This growth was driven by strong results in asset and wealth management.
Generali’s adjusted net income also grew by 5.4%, reaching €3.8 billion. The company’s total assets under management rose by 31.6%, reaching €863 billion.
Gross written premiums increased by 14.9% to €95.2 billion. The rise came from growth in life, property, and casualty insurance sectors. The company also proposed an 11.7% dividend increase to €1.43 per share.
Generali’s shareholders are closely watching CEO Philippe Donnet’s leadership. He faces a key vote at the annual general meeting in April, where they will decide if he will remain as CEO.
Vienna Insurance Group Shows Strong Growth
Austria’s Vienna Insurance Group also reported strong results. The company’s pre-tax profits rose 14.1% to €881.8 million. Revenue from insurance services climbed 11% to €12 billion. This was mainly due to strong growth in property and casualty insurance.
Vienna Insurance’s board proposed a 10.7% increase in dividends, bringing them to €1.55 per share. Shares rose 1.3% in early trading following the announcement.
Banking Sector Sees Big Gains
Deutsche Bank increased its bonus pool for traders by 25%, bringing it to €2.5 billion. This is the highest level since 2014. The increase highlights the bank’s strong results in 2024.
In Poland, PKO Bank Polski reported a 69.1% increase in net profits, reaching €2.22 billion. The bank’s total assets rose to €125 billion. PKO Bank’s stock surged more than 3%, reflecting its strong performance.
BNP Paribas Bank Polska, part of the French banking group BNP Paribas, also posted impressive results. The bank’s net profit rose 133% to €570 million. Net interest income increased by 9.9% to €1.37 billion.
Deliveroo Achieves Profit, But Faces Challenges
British food delivery service Deliveroo achieved its first-ever profit in 2024. The company’s revenue grew by 3% to £2 billion (€2.47 billion). It posted a net profit of £2.9 million (€3.5 million), reversing a loss from 2023.
CEO Will Shu expressed optimism about future growth, citing an increase in Gross Transaction Value (GTV). However, Deliveroo still faces challenges due to changes in consumer spending.
Despite this milestone, Deliveroo’s shares fell nearly 7% in early afternoon trading. The company also announced plans to exit the Hong Kong market due to tough competition and falling sales.
Hugo Boss Struggles Despite Record Revenue
German fashion company Hugo Boss posted record revenue of €4.3 billion for 2024. However, the company’s profits took a hit. Operating profit fell by 12% to €361 million. Net income declined by 17%, reaching €224 million.
Hugo Boss cited macroeconomic uncertainties and weaker consumer demand as reasons for the decline. The fashion giant’s shares fell more than 3% in early afternoon trading as a result of the disappointing performance.
What Lies Ahead for European Markets?
The financial performance of Generali, Vienna Insurance, and the banking sector shows that many European companies are navigating 2024 with strong results. However, challenges remain in the retail and fashion sectors.
Generali’s record profits highlight the strength of the insurance sector. Similarly, banks like PKO Bank Polski and BNP Paribas Bank Polska are benefiting from strong market conditions.
On the other hand, companies like Deliveroo and Hugo Boss are facing headwinds. Despite Deliveroo’s first profit, its future remains uncertain. Hugo Boss must deal with declining consumer demand in an unstable market.
As the year progresses, the key question for European markets will be how companies in these sectors adapt to the challenges ahead. Inflation, changes in consumer behavior, and global uncertainties will continue to affect business results.