Italian insurance giant Generali has unveiled its new 3-year strategic plan after posting strong results for 2017 and claiming that it was on track to hit its financial and industrial targets for 2018.
The company achieved a property and casualty (P&C) combined ratio of 92.8% and a life new business margin of 39.2% in 2017.
Its new strategy, titled ‘Generali 2021: Leveraging Strengths to Accelerate Growth’, will see it focus on European markets, retail and SME clients, integrated asset management offers, and physical distribution.
Generali said these areas of focus would align with its larger ambitions to be a life-time partner to its customers, to lead the European insurance market for individuals, professionals and SMEs, and to pursue opportunities in high potential markets.
European insurance markets continue to remain an attractive prospect for Generali, with high private wealth accumulation supporting the sale of life and asset management products, and demographic trends and reduced public spending driving the development of pension, health and welfare services.
The new strategy also highlights the importance of retail customers in future insurance markets, while the SME segment remains a key opportunity for Generali in its core markets like Italy and Germany.
Generali added that an integrated insurance and asset management offer will become increasingly important as it shifts from a focus on ‘products’ to ‘customers’ and from ‘protection and indemnity’ to ‘prevention and servicing’.
Finally, the insurer maintained that physical distribution networks will continue to provide it with a competitive advantage in the industry, which it claimed will become empowered rather than replaced by new digital tools.
“Generali 2021 … will accelerate the Group’s growth and deliver superior returns to our shareholders,” said Group Chief Executive Officer (CEO) Philippe Donnet. “Our primary ambition is to become a life-time partner to our customers, offering innovative and personalized solutions thanks to an unmatched distribution network.”
“This clear and distinctive strategic vision leverages on our strengths to consolidate leadership in Europe on retail and SME customers, expand operations in high-potential markets and develop a global asset management platform,” he continued.
“At the same time, Generali will continue to focus on generating and managing capital to fund growth opportunities in key markets and drive innovation and digital transformation wherever we operate. Thanks to this set of actions, Generali will achieve between 6 and 8 per cent Earnings per Share average annual growth over the plan horizon.”
“We look forward to implementing this new strategic plan,” Donnet added, “knowing that our track record of delivery, driven by our talented colleagues and underpinned by our strong brand and long-term culture of sustainability, will ensure its success.”