"Cattolica's success is the result of its cooperative model updated to the new market needs": on the eve of an important turning point for the insurance company founded in Verona in 1896, which will materialize with the statutory change to be submitted to the approval of the assembly of members on April 28th, the president of Cattolica Assicurazioni, Paolo Bedoni, claims in this interview with FIRSTonline the uniqueness of the tempered cooperative model applied to the world of policies, while not failing to underline that “Cattolica is a company listed on the Stock Exchange, e like all businesses, it needs capital to grow".
The turning point will therefore be that of an opening to the market, without however renouncing the per capita vote and adopting a one-tier system, "which can guarantee leaner governance, eliminating the board of statutory auditors and giving more powers to the board, which will be reduced from 23 to 17 members, to be renewed at the same time and only every three years, to give greater stability to the company's policy ”.
Chairman, until some time ago Cattolica Assicurazioni was a quiet local company, while now it has become a modern company with full rights in the market: what has given it sprint?
“It's a journey that started from afar. First of all there was, in 2014, the capital increase of half a billion, subscribed by the market, which made Cattolica a well-capitalised company and in a position to face the challenges of the competition”. Then, with the 2015 assembly, we modernized the governance by establishing the complete renewal of the Board of Directors from 2016 every three years. Lastly, last year's assembly made us autonomous and independent from a statutory bond with Popolare di Vicenza, creating the conditions for the relaunch of the group.
What are your strengths today?
“The solidity, the growth prospects indicated by the 2018-2020 industrial plan, and also the figure of the managing director Alberto Minali, an esteemed and recognized manager in the insurance sector. We also expect a lot from the bancassurance agreement with Banco Bpm, in a sector that has always been strategic for us. But I would say that above all our strong point is the very fact of being a cooperative company. We are unique: we have social responsibility in our DNA, with a strong link with the territory, but at the same time we are open to the market, being also listed on the Stock Exchange. Cattolica is the only insurance cooperative listed in Italy, and if the assembly approves the governance reform, we will also be the first insurance company with a one-tier system”.
An ambitious revolution, which attracted the attention of Warren Buffet, who became the first shareholder in 2017. Will you be able to reconcile openness to the market with the cooperative model or are you on the road to becoming a spa?
“Warren Buffett's entry was a reason for satisfaction, but this does not mean that it will go towards the transformation into a spa. Buffett, as far as we know, is a stable investor who analyzes the management and potential of the company, and obviously expects the profit and the dividend. With the new statute - if you want it - your Berkshire Hathaway will be able to have representation on the board with its possible list of capital. To become a member, you must first request it: but at the moment we have not received any signals to that effect".
Returning to the agreement with Banco bpm, which is one of the strengths of the industrial plan: what do you expect from this partnership?
“We have launched an ambitious but credible industrial plan which keeps the agency network central and has its strong point in bancassurance, one of our historical assets which has seen us as a market leader for some time. The agreement with Banco Bpm adds to those already in place with Ubi and Iccrea. It is a joint venture that gives us hope because Banco Bpm is the third largest Italian bank, has a vast and widespread network, and is similar to us in terms of business”.
The new governance which will be submitted to the assembly on April 28 should be considered a point of arrival or departure for Cattolica?
“Like people, businesses too must always feel challenged. Our references are customers and partners. It's therefore a starting point, which confirms the goodness of the cooperative business model, which remains the secret of our success. We have managed to update this model based on market needs, tempering it and also giving value to capital, because without capital there is no growth. We have been coragious, is an ambitious challenge, and the merit must also be given to a Board of Directors which collectively drafted the reform proposal".
One of the reasons that has always pushed your shareholders to defend the cooperative structure is the bond that the cooperative company has with the local area. What does this mean concretely? Will territoriality remain in the new statute?
“From the point of view of the statute there will be no Frplus the territoriality constraint, as it should be in a company listed on the Stock Exchange. Thanks to our business model, the ability to respond to the real economy and to the new demands of society will remain fundamental. In many, with the financialization, have distorted themselves in order to grow: we are remained consistent with our identity and continwe will to be".
Technological innovation is also breaking into the world of insurance: how will you reconcile the role of the robot with that of the human person and in particular with agents, employees and customers?
“Innovation is an opportunity to be seized, knowing however that we will always have a customer in front of us, that is to say a person with whom to establish a relationship of trust. Our industrial plan is strongly oriented towards innovation, but rests above all on people, who represent the real added value of the company”.
