MILAN, Dec 13 Reuters Italy39;s biggest insurer Generali on Tuesday raised the projected boost to its earnings from last year39;s purchase of smaller rival Cattolica, and ruled out negative impacts from new accounting standards.

Generali now expects to achieve pretax synergies of 120130 million euros 127137 million by 2025 from the takeover of Cattolica, compared to a target of 80 million euros by 2026 set at the time of its buyout offer.

Generali paid around 1.2 billion euros to buy Cattolica, which is based in Italy39;s wealthy north east like Generali itself, in a move that strengthened its domestic leadership.

The integration process is proceeding swiftly and effectively, confirming the clear and compelling strategic rationale presented at the time of the offer, the company said in a statement.

Generali sees an additional contribution of 0.4 percentage points from Cattolica to its earnings per share in terms of 202124 compound average growth rate CAGR.

Generali also detailed the effect from new accounting standards, dubbed IFRS 17 and IFRS 9, saying they would significantly improve the visibility of profits in Generali39;s life business while having no impact on cash and capital generation, net holding cash flow, dividends or solvency.

Generali said its operating result is expected to remain broadly stable under the new standards. Also its shareholders equity is expected to be broadly stable compared to the level at the end of 2021.

1 0.9480 euros

Reporting…