Berenberg Lifts Generali Price Target on 'Higher' Earnings Quality

05:01 AM EDT, 07/27/2026 (MT Newswires) -- Berenberg revised its price target for Assicurazioni Generali (G.MI), underlining the "precision and granularity" of the Italian insurance group's remarks at its recent summary of second-quarter developments. "This fine granularity, combined with Generali's stated policy to offset natural catastrophe (nat cat) losses with prior-year development (PYD) - that is, with reserve releases - shows, in our view, that the group benefits not only from ample reserves, sufficient to buffer the quarterly earnings volatility from nat cats, but also from a smooth earnings growth trajectory, where individual items as small as 1% of quarterly earnings can be identified and highlighted," analysts wrote in a note published Monday. "While we see no need to change our forecasts, we believe the higher earnings quality merits a modestly higher valuation." The price target was thus lifted to 73 euros from 71 euros, while the stock's buy rating remains unchanged. For the second quarter, the research firm expects Generali to post a decline in operating profit to 2.13 billion euros from 2.24 billion euros in the previous quarter, noting that the projection reflects normal seasonality and a 19 million-euro reinsurance reinstatement fee. Generali is scheduled to release its half-year results on Aug. 6.