Generali Deutschland, Germany's second largest insurance group, is launching a new phase of industrial transformation to strengthen its operational performance and increase long-term value creation, the two key strategic objectives of the Generali group. The company, reads a note, will implement the following actions:
1) "One company" approach: operations will be simplified in order to maximize effectiveness and efficiency.
2) Strengthening of the Generali brand in traditional channels.
3) Further investments in the leading online business CosmosDirekt in Germany;
4) The channel of Generali exclusive agents (Evg) will be integrated into the Dvag sales network under a new agreement for the exclusive distribution of products with the Generali brand.
5) Generali Leben in run-off from the first quarter of 2018, with an improvement in the Economic Solvency.
6) Generali ratio of 1,7 pp freeing up resources to support growth in the German market.
“Today's announcement is in line with Generali's strategy objectives: to improve operational performance and create long-term value – commented Generali Group CEO, Philippe Donnet – This transaction will accelerate Generali's transformation in the German market , one of our key markets. These actions will be aimed at simplifying processes and consolidating our distribution network, increasing the range of products and strengthening the Generali brand. Furthermore, the run-off of Generali Leben will make available resources that will allow us to seize new growth opportunities in the German market.”
The objectives, the company explains, are to rationalize the operating machine through a vast simplification of the product and service factories in Germany; strengthen the Generali brand, through the rationalization of the portfolio of German brands; create a focus on innovation for customers and the distribution network, simplifying and improving the distribution strategy on the market; rebalance the portfolio through a long-term solution for Generali Leben's life portfolio.
“With this programme, we begin the next phase of the journey undertaken by Generali Deutschland towards excellence – said Giovanni Liverani, CEO of Generali Deutschland – This will allow us to accelerate our growth, consolidate profitability, reduce capital absorption and strengthen our competitive position. The adoption of the “One Company” approach will reduce complexity, improve the ability to enter the market and strengthen our ability to innovate in smart product and insurance. Leveraging our long-standing partnership with the excellent DVAG sales network and strengthening CosmosDirekt's leadership in digital sales will further enhance our competitive edge in distribution."
