The new strategy was announced by the Generali Group, which was closed last year with a premium income of 63 billion euros. The company's executive director, Philip Donnet, recalled:
the insurer is already out of a successfully managed financial and operational turnaround, the plan of 2021 aims to expand and expand the wealth of shareholders.
According to the announcement, the amount of paid dividends would increase to 55-65 percent, with the annual rate of increase in earnings per share from 6 to 8 percent by the end of the period – the dividend increased from 0.2 euros per share in 2012 to 0.85 euros per share last year.
The three-year strategy aims to make a profit of 11.5 percent ROE (capital).
The company sees the opportunity to attract 10.5 billion euros of fresh capital, with debt being reduced by 2 billion euros at the end of the planning period. Concentrated asset management can be a surprise: the strategy expects a growth of 15-20 percent annually from 487 billion euros at the end of 2017, based on the growth of private assets, and the general believes that customer needs for integrated products for managing life and the funds will increase.
Additionally, demographic trends and public reactions will stimulate self-help savings (expect a jump in pension and health insurance).
Serious digital developments are also planned, but the CEO warned: in this industry, digital solutions can only be useful for physical sales.
In Italy and Germany, the market leader will be strengthened, and in France, the results of the merger are hoping for growth from Generali. Serious growth potential of 15-25 per cent is seen mainly in Asia and Latin America.
Also, we want to strengthen our leadership in Central Europe, this recent Polish and Slovenian acquisitions also help, but the basis for growth in the region will be organic development
Answer Philip Done. In these markets, the general manager sees growth in the retail segment, and focuses on small and medium enterprises in Italy and Germany.