Possible dividend increase as early as 2014, advance on 2015 financial targets and no acquisitions envisaged in the new industrial plan, which will arrive in six months. These are the main innovations communicated by Generali before the start of the Investor Day scheduled for today in London.
DIVIDEND ABOVE 40% OF EARNINGS MAYBE ALREADY IN 2014
In detail, the Lion confirms that, thanks to the capital strengthening carried out in advance of the 2013-2015 plan, the constraint of a pay-out not exceeding 40% has been lifted. The company will therefore be able to distribute a dividend higher than 40% of the profit already for the 2014 financial year.
“In these two years we have followed a dividend policy which limited it to no more than 40% of the annual net profit – recalled the CEO, Mario Greco – and in fact last year we distributed 35-36%. As we announced, this dividend policy no longer binds us and we will see what the net profit will be for the year and what the board of directors will propose to the shareholders' meeting, but we can already pay more than 40% this year because we no longer need accumulate capital".
Greco has not yet quantified the possible increase in the pay-out: “The dividend will be decided in February-March next year, once the accounts have been closed. But until now we had the constraint of never distributing more than 40% because we had to accumulate capital. Now, however, this constraint no longer exists, a year ahead of schedule".
Thanks to the actions implemented by the group in the last two years, Generali's balance sheet "has strengthened and there is a greater capacity to generate dividends in order to increase the return for shareholders, with an expected increase of the payout exceeding 40% since 2015. Now the group is prepared to face global competition and continues to work to ensure that in the future the shareholders receive an adequate, sustainable and progressive return in a lasting way”.
ADVANCE ON FINANCIAL TARGETS TO 2015
Generali also announces that it is ahead of the financial targets envisaged for 2015, largely already achieved or nearing completion, with respect to the plan for the increase in operating Roe to 13%, while it has already achieved the higher Solvency I targets to 160%, that of the sale of assets for 4 billion euros and that of a free surplus above 2 billion.
SCHEDULED MAY 27, NO ACQUISITIONS IN SIGHT
The new plan will also be presented on 27 May 2015 in London – added Greco – and “will not envisage acquisitions. We are working on an organic growth plan, for the organic development of the company, where we will enhance the parts of Generali that we have strengthened over the years. We have a platform of direct channels and telematics services that no one else has on the market and which we have further strengthened with the partnership with Discovery. But it will be a plan based on our resources and organic development”.
