Generali’s Board of Directors has approved a new three-year strategic plan, Lifetime Partner 27: Driving Excellence, which aims to enhance excellence in the firm’s customer relationships, operating model, and core capabilities.
Philippe Donnet, Generali Group CEO, commented on the news, “Generali has successfully over-delivered against the financial targets of its ‘Lifetime Partner 24: Driving Growth’ plan in a tough global macro environment.
“We will now accelerate our pursuit of excellence to drive higher earnings growth and cash generation, targeting increased shareholder returns with double-digit growth in the dividend per share leading to over €7 billion in cumulative dividends plus a commitment to at least €1.5 billion in share buybacks over the plan horizon, including the €0.5 billion buyback that we are launching in 2025 as presented today.”
According to Generali, the strategic plan will create significant and sustainable value, targeting an EPS CAGR between 8 and 10%. The plan will also target sustained growth in cash generation, reaching over €11 billion of Net Holding Cash Flow supported by ca. €14 billion of remittance from subsidiaries.
Generali said it will also target normalised capital generation above €14 billion over the plan horizon.
“All of this reflects the consistent application of the Group’s capital management framework and a clear commitment to increasing shareholder returns,” the firm said.
As mentioned, Generali has committed to a Dividend per Share (DPS) CAGR of above 10%, targeting more than €7 billion in dividends over the plan horizon, ca. 30% higher than the €5.5 billion distributed during Lifetime Partner 2024.
At the same time, more than €3 billion have been allocated to share buybacks and other capital deployment. Generali noted that it has additionally committed to at least €0.5 billion in annual share buybacks, with the amount to be assessed at the start of each year.
“A €0.5 billion share buyback for 2025 has already been confirmed, subject to AGM and regulatory approval. The Group will assess M&A opportunities with a strict discipline, also benchmarking any potential transaction against share buybacks,” Generali added.
Donnet continued, “Thanks to our ‘Lifetime Partner 27: Driving Excellence’ plan, we will further enhance excellence across our customer relationships, our Group operating model and our core capabilities.
“We will invest in AI, new technologies and upskilling our employees to capture opportunities from emerging trends, fast-changing customer expectations and a rapidly evolving market. The combination of our market-leading P&C and Life business and a global Asset Management platform, that can be further transformed by our proposed partnership with BPCE, is a powerful differentiator that creates significant value.
“Generali is ready to once again support individuals, families, professionals and businesses, and deliver for all stakeholders throughout our ‘Lifetime Partner 27: Driving Excellence’ plan.”
