What happened? Generali management hosted a detailed call discussing the outlook for 2025 given the strong starting point and delivering across FY 2024. Much of the call was spent discussing the detail of the numbers, given the company appears to be delivering ahead of expectations in some areas. Some of these positives appear sustainable, whilst others the company is more reticent to forecast continuing. However, the clear takeaway from both the results and the management call is that operating trends in the insurance business, most notably PandC are positive. We discuss the key takeaways below. BNPP Exane View: . Italian government bond exposure: There were some comments made by CEO Philippe Donnet on the Media call this morning surrounding Generali potentially increasing Italian government holdings. Any increase in exposure to BTPs would be in contrast to the long-run trend at Generali. On the call, these comments were downplayed. The company stated that the company may increase purchases of BTPs in line with the growth of the Life book and in line with their risk tolerance. However, the main strategic asset allocation priorities remain to decrease exposure to government bonds and increase exposure to Private Assets, as the company outlined at the investor day. . Strong Motor performance is evidence of underlying improvement: The company delivered a 98% undiscounted combined ratio in its Motor business in FY24, ahead of c99% that the company suggested at its investor day and a material improvement on recent years performance. Management indicated that this is an underlying number, with tariff increases earning through and favourable frequency trends expected to continue. Management is seeing tariff increases ahead of inflation, which will continue to support Motor combined ratio development, suggesting the company is clearly on the path to achieve the target Motor combined ratio for the next plan. . Investment returns: The company was a bit...