A 2018 that exceeded all targets, bringing profit to grow by almost 10% to 2,3 billion, the dividend to exceed 5 billion euro and net inflows in the Life sector to 11,4 billion, testifying to growth also in asset management , which in the last calendar year contributed 235 million to the group's profit, 24% more than the previous year. Generali thus archives the last year of the previous industrial plan and launches itself with optimism into the new three-year period designed by CEO Philippe Donnet: "We recorded excellent financial and industrial results - commented the French manager at the press conference at the Generali Tower of Citylife in Milan - but this it is not a point of arrival, but the point of departure for the new strategy to 2021″.
The new phase begins with confidence - it is no coincidence that SocGen has risen to 5% in the capital of the Leone - also because Generali "has not made any bets", as Donnet is keen to reiterate in relation to both the economic situation in Italy and the geopolitical context international, both in terms of interest rates set by the ECB or exposure to Italian BTPs. “It's a medium-long term plan, so we're not worried about the slowdown in the Italian economy, for example. There is a constant and normal dialogue with the Government, but we have not made bets on the economic trend: in any scenario, as long as it is normal, we remain confident", said the CEO of the Lion, adding that "Italy has one strength, and it will always have it, which is that of the SMEs, i.e. medium and small businesses which, however, are large in terms of quality. Thinking in the long term, we are interested in that and therefore we are not worried".
Also because, as demonstrated by the same results and strategies for the next three years, the business is very diversified and will be more and more, “both geographically, since we are present in 50 countries around the world, and as lines of business. For example, if the economy slows down, obviously consumption and investments slow down and this is bad for the Non-Life sector, but on the other hand the propensity to save increases and this instead benefits the Life sector and asset management”. Asset management was one of the protagonists of the year that has just ended, with inflows growing by 5,2% to 11,4 billion: “Asset management is continuing well – commented Donnet – according to the intentions of the new plan, for which we expect an annual improvement of 15-20% between now and 2021. His contribution is important because it means more assets and more assets managed directly by us, therefore more operating margin".
The "treasure" in the plan started on January 1, 2019 it is estimated at 10 billion, "of which about 6 to be allocated to dividends and debt reduction, and about 4 to growth and development". Even through acquisitions? “We haven't planned any because it's not possible to do it, but we will carefully evaluate all opportunities. I can only reiterate - explained the Corsican manager - that our 2021 plan is not based on M&A and that we are not dependent on any acquisition operations". However, one of the most interesting glimmers could be the one on Germany, where today Generali is already the second insurance company behind Allianz and which for the Lion is the second market after the Italian one: “There is great attention on the opportunities in Germany, where we want grow”, confirmed Donnet after the accounts, in the P&C sector, showed an operating result of +26,5% in 2018 in Germany, compared to -22% in France and -8,5% in Italy.
Speaking of France, Generali's number one was also asked about the tensions between Rome and Paris, and he didn't shy away from the question: "What interests us is that Italy has good relations with all 50 countries where we are present , and at the moment it is. I've never had problems with being an Italian company. Ours is an Italian but also an international, independent and listed group”. That is why, apart from those with France, international tensions are of no concern. Provided that Europe is cohesive and that Italy continues to be part of it with conviction: “We are the leading insurance group in Europe, Europe is important to us. I see no threats to its cohesion, apart from Brexit, but we must understand that there is no turning back: there is no future outside Europe”.
And not even far from China: it is being talked about these days with the Silk Road Agreement, which Donnet welcomes, recalling the importance of the Asian market in Generali's plan: “We started with joint ventures 15 years ago. Relationships aren't always simple, but this happens almost everywhere. Today in China we have a partnership with CNPC e an increasingly significant turnover“, admits Donnet recalling that in his career he boasts an experience of 8 years in Asia, of which four in Japan
Finally, no bets, not even on the financial front: Generali's exposure to BTPs to date is 59 billion, equal to 12% of managed assets, and that threshold is fully satisfying for Donnet. "It's an exhibition that doesn't create any kind of problem for us and it's fine as it is, we're not thinking of either decreasing it or increasing it", he confirms when answering journalists' questions. On the interest rate front, “Generali is ready until 2021 for a regime of very low rates like the current ones: if the ECB then raises them, it will be a bonus for us. But we made a prudent assessment, without taking any chances".
The results and even Donnet's words are currently convincing investors, since mid-afternoon the Generali stock does better than the Ftse Mib, gaining 1% to nearly 16 euros per share. And in the short term, the group's 71 employees will also benefit from it, to whom Generali shares will be distributed according to methods that will soon be defined.
