Saturday , January 22 2022

Generali, 3-4 billion for growth. Donnet ad Affari: "Here's how I transform Leo"


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by Andrea Deugeni
twitter11 @andreadeugeni

"Plan focused on growth and on development: in 2021 we will more diverse group, not just from insurance, but also from asset management, The more international and with business That will still be much less dangerous o 'compared to the past " Fog group any Assicurazioni Generali Philippe Donnet describes it as follows y physiognomy that the company will have taken at the end of the 2019-2021 business plan, strategies that Leone's head of company is in his second market appointment (the first time he was in London, November 26, 2016, when the plan's objectives set by his predecessor Mario Greco), after Presented today in Milan on occasionInvestor Day.

BTP AND CASE Languages/ While on the markets, Italy's case returns to shake investors, what are the most General measures He took the country in draw new strategies? in first place, Donnet explained that he "assumed lower Italian CMC growth compared to market estimates"so we can guarantee target when operating the scheme. In the case of the Btp control, the company's head has communicated that the Trieste company is the scheme's arc continues to reduce the weight of bonds and government at the expense bonds business, without saying that if this is trends It will also be about the securities of the Italian government that the Lion currently, including the Banca Generali subsidiary, can see in the balance sheet for 64 billion euros.

The growth that Donnet predicted for Generali has to confirm in Average annual increase in profits between 6 and 8%, with & quot; Distribution of about 55-65% of dividend profits and return on equity (Roe) beyond11.5%. At the front of the debt the insurance company is aiming for one a reduction of 1.5-2 billion euros by 2021, with one interest spending between 70 and 140 million and with one A generation of capital at the end of the scheme exceeds 10.5 billion. Resources coming from cash management and from there disposals. All this is against the goal of costing around 200 million to 2021 in mature markets.

Del cash In total, the number of the Lion explained, "5.5 billion is allocated to the dividend dividend, 1.5-2 billion instead of & # deleveraging the group, the rest, 3-4 billion, is used for the growth two organic Both, if we find opportunities, too for merger and acquisitions"From the operational perspective, the plan is expressed three pillars. y Firstly: profitable growth with focus on maintenance & leadership in Europe, on growth in high potential markets and on asset management development. y Secondly: optimize capital management by increasing & cash payments to the company holding (+ 35%). y third: digital conversion in relation to customer relationship, distribution and operations. Pillar that Generali will keep billion investments, too to come full-time partner (maximum flexibility through modular products, offering help with attention H24 7 days a week and 360 degree advice).

Move the focus ar geographical location, I'd be further optimized after the last two years' operations, Donnet aims to strengthen Europe's leadership (in 2018 € 63 billion in premiums collected from a network that contains more 150,000 agents and sellers in its main markets) mainly in Italy, France, Germany and Spain and to focus on it high potential insurance markets (15% -25% and growth of the 2018-21 composite annual earnings rate) as Asia ac Latin America. Markets where the Lion will stay Focus on retail and Pmi customers.

general bees

in Italy, Agents & Agents will have to increase their language productivity y 10-15% (to 2021), focusing on "protection, prevention and support supported by technology"And on potential growth opportunities to collect in the healthcare sector and in corporate well-being, where the company is active with the subsidiary Welion launched a few years ago. On the strategy to strengthen i business services, Donnet explained that "one is still subdivision in the Italian and German markets, where the world's strongest SMEs: there are many opportunities to grow, for example in the sector wellbeing in Italy ".

general graphs
Individual contributions to the average annual increase in profits between 6 and 8%

Always from industrial perspective, y CEO he also added that he had also targeted them opportunities for autonomous driving. "The car sector, with the car without a driver – explained – will face the control of a very deep, moving, perhaps the strongest and most intense change of our business over the next few years. We are European leaders in the mototelematics, we have 2 million cars ".

general bees 2
General Philippe Donnet General Insurance Group

Specifically ofLatin America, Generali aims to double the number of customers, rising from 5.8 million today to 11.8 million in 2021. In particular, the Brazil, Leone wants to increase profitability with products that are tailored to companies and generally for the retail market while they Argentina, following the successful model of The box, wants to expand to other segments with new partners.

About usAsiarather, the goal is increase agents by 80%, come to 23,000 share around in 2021 with 50% increase on productivity.

Y HER GYDA ALLIANZ A AXA/ "A new aggression scheme to grow faster than competitors". To write it is Financial Times which therefore defines the new strategic plan designed by Donnet. There is a plan that sets the "growth target of 6-8% of earnings per share for the next three years" and this "is much higher than the growth achieved by Generali in recent years." "But it is also higher than the targets set by the other European insurance groups – Axa promised a growth of 3% -7% while Allianz of 5%, even if both have to give a market update in the next few weeks ", writes Ft.

The market is also understood where 3-4 billion will be used for organic and organic growthM & A, "Acquisitions – specified Donnet – have not been included in the plan (and will not be counted when achieving financial targets, ed) because you can not plan them. "If the general manager is not activated Frederic de Courtois He explained that the company could allocate resources to stock repayment.

At this time there are no specific documents on the board ("Priority i The European market, on insurance, medium and small, in life and in damage, and onasset management, with priority for business dedicated to retail, "he explained of Courtois) but, following the launch of a strategy in 2017 in 2017asset management, with € 487 billion asset, an important part of the resources will be about to develop one a global platform to accelerate control (15% -20% and growth of the combined annual earnings rate 2018-21).

The long-term ambition is to enter the the first five multi-boutique of the world for profit. Generali has indicated a target net income from global asset management was more than doubled from 187 in 2017 to over 400 million euros in 2021, with an operating edge rising steadily to 45% by 42% in 2017. In addition, the percentage of net revenue from external, large customers driver Generali aims to claim its size compared to the market, it is expected to grow from 6% in 2017 to 35% over the plan period.

Introduced before the bell sound Stock Exchange Leone's new strategy, whose targets have exceeded the financial analyst's expectations Simita Sim, Support the stock immediately, pushing it up to over 2%. After the turning point, the General Share proportion decreases to 0.7% to € 14.26.

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