Juliet, or Veronese, takes flight Cattolica Insurance, upon the announcement of the White Knight's arrival from Trieste: Generali. A good deal for the shareholders, starting with Warren Buffett, a 9,9% shareholder of the Veneto-based company, which jumped by around 30%, to 4,63 euros. But also for the Lion, already focused on commercial and industrial synergies to be developed with the new subsidiary.
Of Cattolica, Generali will control just under 25% after the transformation into a Spa, because the transition of the cooperative to a joint-stock company is included among the conditions of the operation. In short, a small revolution that over time will have a profound effect on the balance of Italian finance. Let's see how.
Generali will initially invest in Cattolica 300 million intended for a reserved capital increase at 5,5 euros per share, with a 52% premium on yesterday's closing price of Cattolica. Il Leone will thus acquire a share of 24,4% subject to the transformation of the company into a joint stock company.
In the extraordinary shareholders' meeting, which will probably be held by the end of July, Generali will also be able to subscribe pro-quota a capital increase offered as an option to shareholders up to 200 million.
The meeting already set for Saturday 27 June will serve to follow up on thecapital increase for 500 million necessary to bring the group's solvency ratio to 172%. But to complete the operation, a series of conditions must be met, starting with the transformation into a spa.
The evolution of governance will be accompanied by the change of top management. The long reign of Paolo Bedoni ends, president since 2006, which has defended the cooperative formula almost to the very end, only to seek other solutions in the last period. However, the ex to Alberto Minali will not replace him, already estranged from Bedoni but also on cold terms with the CEO of the Lion, Philippe Donnet (even if he can be considered the moral winner of Cattolica's turnaround).
To ensure a common thread with Trieste will probably be i manager of Generali school now in Cattolica, like the co-director general Valter Trevisani, already a veteran of the Leone.
Beyond the candidacies and the next choices of Cattolica (so far inclined not to contribute its stake in Ubi to Intesa Sanpaolo's Ops) the operation deserves to be evaluated (and promoted) for its industrial sense. Generali's country manager for Italy said, Marco Sesana: "The strategic partnership with Cattolica is a unique opportunity, today in Italy, for profitable growth in asset management and innovative services to non-life customers, pillars of our Partner di Vita 2021 strategy". Four areas will be involved in the commercial partnership: Asset management, Internet of Things, Business Health and Reinsurance.
Finally, the agreement will allow Leone to increase exposure to businesses such as bancassurance and motor liability in Italy with an impact that could become significant in the long term.
Modest impacts on the estimates but which could become more significant in the long run.
