General Shares: Medium and Long Term Stock Performance Forecasts

Is it worth buying the shares of the General Group? How is the title going and what are the prospects for the next time? Let’s take stock of the updated situation: if you are an investor interested in the stock, it is best to read this article.

Performance of the General stock and forecasts for the future

We all know the General Group as one of the most important international insurance and financial companies, present in 50 countries with 61 million customers.

It is present on the Italian market with various companies, the main ones being: General Italia (retail and SME market), Allianz Assicurazioni (Life products for families), Generate (direct insurance company) and Genertellife (sale of remote life products).

The offer in Italy of Generali is very wide and includes pension and family protection policies, products for investing, savings plans, damage coverage ranging from car insurance, home, leisure time, accidents and illnesses, up to protection from risks for professionals and companies.

Over the last few years, Generali has further strengthened its presence in Central and Eastern European countries, also expanding to Eastern countries including China and India.

The Company is solid and has been dealing with families and small savers for many decades, this is certainly an important fact. But how is the stock listed on the stock exchange?

Today prices fluctuate between 13 and 11.50 euros per share, while at the beginning of the year before the pandemic broke out, the price exceeded 18 euros. It is therefore evident that a real recovery after the blow in March is not yet possible.

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After all, the financial sector and also the insurance sector were among the most affected. Specifically, the economic difficulties encountered by families and the change in lifestyles during the lockdown (for example the reduction in mobility) have led to a decline in the profitability of insurance companies, with decrease insolvency and liquidity.

On the other hand, the health emergency could prove to be an opportunity for the renewal and growth of the sector. In fact, the needs of people who have opened their eyes have changed with respect to the need to insure against risks. Therefore, golden times are foreseen for life, health, and sickness policies.

Therefore, there is no reason to doubt a rise in Generali shares, which has solid capital indicators and has a very large distribution network.

Among other things, the Group is a leader in various insurance branches and offers services in both the banking and investment sectors. Having a diversified business enjoys an important advantage over single-issue companies.

The forecasts for the near future are therefore optimistic.

Is it worth buying Generali shares?

At this point, it all depends on how much confidence you place in General’s ability to overcome moments of crisis, as well as in the type of strategy you are pursuing.

For example, I do not invest in the short term and I do not bind myself, even on long-term perspectives, to the destiny of individual companies.

This is because my investment philosophy (which you can read here) is built on the concept of diversification and risk distribution across multiple asset classes, sectors and geographies.

Although Generali is a solid reality, it is nevertheless linked to the economic vicissitudes of the Eurozone and Italy, and of the financial and insurance sectors, which in any case are interconnected.

Where to buy the shares?

However, if your intentions are to make an investment in stocks but you don’t know how and where to buy them, read this paragraph because I’ll briefly explain what you need to do. There are two possibilities:

  • Going to your bank, the simplest way to buy shares. All you need to do is open a securities deposit linked to your current account that allows you to invest in equities and other financial instruments. The disadvantage is that, in general, the bank charges very high fees which affect your returns;
  • Alternatively, to spend less, you can use an online platform that specializes in buying shares. By opening an online account, you can easily access the markets in a more intuitive and economical way.