Fitch Ratings upgraded its outlook for Assicurazioni Generali S.p.A. (Generali) and its core subsidiaries from Stable to Positive, affirming the Insurer Financial Strength (IFS) Rating at ‘A+’ and the Long-Term Issuer Default Rating (IDR) at ‘A.’
The Positive Outlook aligns with Fitch’s recent adjustment of Italy’s sovereign outlook to Positive on October 18, 2024, and reflects Generali’s reduced exposure to Italian sovereign bonds.
Generali’s affirmed IFS Rating at ‘A+’ and IDR at ‘A’ signify its strong company profile, capital strength, and leverage. However, Fitch noted that a sustained increase in Generali’s sovereign investment concentration risk above 1.0x capital, a deterioration in capital strength, an uptick in financial leverage, or a shift in Italy’s outlook to Stable could lead to a downgrade.
Conversely, an upgrade of Italy’s sovereign rating, alongside Generali maintaining its sovereign investment concentration below 1.0x capital, would support a potential upgrade of Generali’s ratings.
