Generali confirms the strategy with a horizon to 2021 and, despite the pandemic, it does not change the financial goals. The Lion communicates it in the update of the three-year strategic plan, published on Wednesday morning. The group therefore reiterates its commitment to achieving the targets set by Generali 2021 plan:
- increase of earnings per share of 6%-8% per year;
- growing dividends for a total of 4,5-5 billion in the three-year period 2019-2021, with a pay-out of 55%-65%;
- higher return to shareholders: the Roe of 2019 and that expected for 2021 are higher than 11,5%, while that of 2020 is weighed down by the impact of Covid-19 and non-recurring charges.
To these parameters, Generali adds another 100 million in savings by 2021, which add up to the original spending reduction target (200 million), bringing the total to 300 million. As for the financial debt reduction amounting to 1,9 billion, Leo announces that the goal has been achieved a year ahead of schedule.
On the Covid side, “they have been proactively adopted decisive initiatives to minimize the direct impact of the pandemic on business - it is read in the press release – protect shareholder value and support customers, agents and communities, also thanks to the use of the 25 million Extraordinary International Fund in 100 countries”.
In terms of strategy, Generali “is now well positioned to seize profitable growth opportunities in the life segment and in supplementary pensions – continues the note – in a scenario in which demand in this sector increases with the aging of the population, representing a unique opportunity for the offer of pension products”.
For the CEO of Leone, Philippe Donnet, “the Generali 2021 strategy is confirmed to be effective and even more valid in the current market context. The group is facing the most serious post-war global crisis leveraging its strengths: disciplined execution of strategy, focus on technical excellence and a strong distribution network and diversified business model. These strengths, together with our capital strength and excellence in innovation, allow us to be fully committed to achieving the financial targets of our strategy and to be well positioned to seize future opportunities. Two years after the launch of the plan, we are maintaining our commitments with all stakeholders, thanks also to the enhancement of our people, an ever stronger brand and our growing commitment to sustainability".
