Generali Group CEO, Philippe Donnet, has suggested that the firm’s recent acquisitions have further strengthened its position as a leading European insurer while also expanding its Asset Management business globally.
According to Generali, the acquisition of Liberty Seguros, announced in June 2023, will enhance the firm’s competitiveness and will contribute over €250 million annually to its Pre-Tax Profit by 2029.
Generali continued, “The transaction significantly strengthens the Group’s market position in Spain and Portugal, complementing Generali’s existing Iberian operations in terms of product offering and distribution strategy. The acquisition also gives Generali a presence in the profitable Irish P&C market.”
Meanwhile, the Conning acquisition deal, announced in July 2023, is set to accelerate the implementation of Generali’s vision on Asset Management and enable it to enter the US market.
Generali added, “Conning is a strong cultural fit thanks to a shared insurance DNA and specialised investment capabilities. The long-term partnership with Cathay Life ensures stability of AUM at Conning and provides opportunities for business expansion in Asia. The Group expects to achieve annual synergies between € 70 and € 80 million from the transaction within five years.”
Generali also noted that its Protection, Health and Accident (PH&A) businesses have become significant contributors to its profitability, representing 22% of Gross Written Premiums in 2022.
The firm said it anticipates continued growth from the PH&A businesses, thanks to its leadership position in European personal lines, an extensive and revamped product offering, and its unique proprietary distribution network.
With all this in mind, Generali has decided to submit a proposal to the upcoming AGM in April to launch a €500 million share buyback plan during 2024, subject to all relevant approvals.
Philippe Donnet commented, “Since the launch of our ‘Lifetime Partner 24: Driving Growth’ strategic plan, Generali has continued to enjoy profitable growth and create value for all stakeholders.
“Recent acquisitions have further strengthened Generali’s position as a leading European insurer and expanded our Asset Management business globally. Alongside our strong financial results, we have also maintained our focus on innovating our Lifetime Partner relationship model and successfully carrying on our long-term sustainability journey.
“As a result of our confidence in both completing our plan and in the Group’s cash and capital position, we will propose a € 500 million share buyback at the next AGM in April, confirming our focus on shareholders remuneration.”
