قالب وردپرس درنا توس
Home / Insurance / Generali CEO invests in repurchases, bold profit targets to keep the job

Generali CEO invests in repurchases, bold profit targets to keep the job



(Reuters) – Generali, Italy's largest insurance company, said it would stick to bold profit targets for 2024, raise dividends and launch its first repurchase in 15 years as CEO Philippe Donnets attempts to hold on to resistance from two billionaire investors. [19659002] Mr. Donnet's reappointment as CEO next year is opposed by construction magnate Francesco Gaetano Caltagirone and Leonardo Del Vecchio, founders of eyewear giant Luxottica, who want the insurance company to be more ambitious when it comes to expanding through acquisitions.

The new strategy, which Mr. Donnet described. In a news briefing on Wednesday, earmarked up to € 3 billion ($ 3.4 billion) for mergers and acquisitions in insurance and asset management.

Del Vecchio did not attend the meeting after saying they received details too late to study them properly, said two sources close to the matter.

In total, the plan won 1

1 out of 13 votes, the sources said. Mr. Donnet is supported by Mediobanca, Generali's largest shareholder. Mr Caltagirone and Mr Del Vecchio are the second and third largest.

The stock climbed 1% on Wednesday, when analysts gave a thumbs up to the new strategy.

"M&A remains a tool to accelerate shareholder value creation," Mr. Donnet told the briefing that Europe and Asia would be targets for insurance and asset management, and the US and UK only for asset management.

In addition to the buyback over the next 12 months, Generali aims to pay up to € 5.6 billion in dividend over the next three years, up from € 4.5 billion over the previous three years. It said it was aiming for an average increase in earnings per share of 6% -8% per annum.

In its previous M&A plan, Mr. Donnet spent 85% of a EUR 4 billion M&A war fund. He spent almost 1 billion euros on buying the rival Italian insurance company Cattolica.

According to the strategy outlined on Wednesday, the Trieste-based insurance company also said it would increase digital investment by 60% compared to 2021 to € 1.1 billion in 2024.

The company sought to increase property and accident premiums by more than 4% per year on average from 2021 to 2024, it said, adding that it targeted small businesses and elderly care in Europe and travel insurance in the United States.


Source link