November 7, 2019 / 6:57 AM / 8 days ago

Generali profits rise, capital reserves hit low interest rates in third quarter

Assicurazioni Generali logo is seen in Florence, Italy March 1, 2016. REUTERS/Tony Gentile/File Photo

MILAN (Reuters) - Italy’s biggest insurer Assicurazioni Generali (GASI.MI) reported a rise in 9-months profit on Thursday that was broadly in line with market estimates, though capital ratios fell due to regulatory changes and low interest rates.

Generali’s solvency ratio, a key measure of financial strength, stood at 204%, down from 217% at the end of 2018, due to expected regulatory changes and lower interest rates in the third quarter, the company said.

The fall in interest rates was not fully compensated by a narrowing of government bond spreads, the company said in a statement.

Operating profit grew 9.1% to 3.9 billion euros, in line with market consensus provided by the company at 3.88 billion euros.

Reporting by Gianluca Semeraro; editing by James Mackenzie

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