From the divestments, Generali expects to collect 4 billion euros by 2015. This was announced by the CEO of the group, Mario Greco, presenting in London the new strategic plan. The transactions include the sale of the Swiss subsidiary BSI and the sale of the life reinsurance business in the USA.
“We expect an overall benefit from non-core asset divestments, including those already announced, as well as possible others, of approximately $4 billion on regulatory capital by the end of 2015,” Greco said. “We see no significant delays or surprises so far in the process. We will continue with the sales process and remain confident that we will see good solutions in the market for the assets we want to sell.”
However, a clarification also came from Greco: “We are not yet at the point where we have binding offers – explained the CEO -, let's see and wait for the outcome of the process. As I have said many times, we are not necessarily sellers. If we find that the offers are not attractive enough for us we will take a step back and consider alternative options."
Furthermore, Generali aims to reduce the weight of its senior debt, which is higher than that of its competitors, and to diversify its sources of financing, also looking at the retail market (as well as the institutional one) and at the issue market in US dollars and in Singaporean currency (as well as euros and pounds). The proceeds from the divestments "could be partially used to repay the debt," the company said.
The news coming from the strategic plan does not seem to be appreciated by the markets. At the end of the morning, Generali's share dropped 1,8%.
