Fitch Ratings has upgraded Generali and its core subsidiaries’ Insurer Financial Strength (IFS) Ratings to ‘AA-’ from ‘A+’, citing lower sovereign risk and the group’s very strong profile, capitalisation, leverage, and operating performance.
The agency has also upgraded Generali’s Long-Term Issuer Default Rating (IDR) to ‘A+’ from ‘A’, assigning Stable outlooks to both ratings.
Addressing Generali’s reduced sovereign risk, Fitch noted that the Italian insurer held €35 billion in domestic sovereign bonds at end-H1 2025, down from €39 billion at year-end 2024, equivalent to 0.6x shareholders’ equity, including the post-tax contractual service margin.
“We expect the investment concentration risk to stabilise in 2026. Generali’s risky assets ratio, which measures the ratio of risky assets to capital, improved to a pro forma 73% based on end-2024 results reported under IFRS17, from 81% if the upgrade of Italy is not considered.”
Fitch also highlighted Generali’s very strong company profile, noting its position as the third-largest European insurance group by premiums, with leading market shares in major Western European countries and a significant presence in central and eastern Europe and Asia.
The agency said the group benefits from its large size and broad diversification across geographies, products, client groups, and distribution channels.
At the same time, Fitch views Generali’s capitalisation as very strong, with a Solvency II ratio of 212% at end-H1 2025, and a low financial leverage ratio of 17% at end-2024, comparing favourably with peers.
With this in mind, the agency said it expects Generali to maintain its capital strength and broadly stable leverage through 2025–26.
As a final driver for the upgrade, Fitch highlighted the Italian insurer’s operating profit, which, calculated under IFRS 17, improved to €7.3 billion in 2024, with a very strong performance in non-life.
This momentum carried into H1 2025, with Generali posting a consolidated operating result of €4.05 billion and an improved combined ratio of 91%.
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