Generali Aims for Higher Dividend in New Strategy to 2024
December 15 2021 - 2:04AM
Dow Jones News
By Ed Frankl
Assicurazioni Generali SpA on Wednesday issued a new strategy to
2024, including a higher dividend and annual earnings growth of 6%
to 8%.
The Italian insurer said it would boost cumulative dividends
across 2022-24 to between 5.2 billion and 5.6 billion euros ($5.86
billion-$6.31 billion), up from EUR4.5 billion in 2019-21.
The Trieste-based company is also targeting cumulative net
holding cash flow of more than EUR8.5 billion in 2022-24.
The insurer also targeted 4% compound growth in nonmotor
premiums to 2024 and EUR2.3 billion to EUR2.5 billion in new
business value in 2024, compared with EUR1.9 billion in 2020.
Generali plans to pump EUR1.1 billion in investment in
technology and digital transformation in 2022-24, up by 60% from
its 2021 targets.
The new guidance comes amid a battle at the top of the company.
The board approved the plans without the votes of two
members--billionaires Leonardo Del Vecchio, chairman of
Franco-Italian eyewear company EssilorLuxottica SA, who abstained
through his holding company Delfin Sarl, and Francesco Gaetano
Caltagirone, who voted against--according to a person with
knowledge of the matter.
Earlier this month, the two men, alongside banking foundation
Fondazione CRT, took their overall stake in Generali to more than
15%, the Italian insurer said Saturday.
The parties had previously agreed to use their combined
shareholding in Generali to push for a "more profitable and
effective management," challenging Generali's boss, Philippe
Donnet, and its largest single shareholder, Mediobanca SpA.
"Generali has a strong financial position, diversified earnings,
consistent profitable growth and a track record of generating
best-in-class shareholder returns. We look forward to building on
these achievements over the next three years," Mr. Donnet said.
Generali's 2021 targets were all met or exceeded, the company
said.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
December 15, 2021 01:49 ET (06:49 GMT)
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