A 2,5 euro treasure to spend on acquisitions, "trying to collect the opportunities granted by Covid, even if at the moment there is nothing on the table", and no sale in sight, least of all that of Banca Generali, on whose voices the CEO of Generali Philippe Donnet cuts short: "We are very happy shareholders of Banca Generali, no operation is on the table with anyone, including Mediobanca". Generali is therefore proceeding at full speed in his strategic plan to 2021, whose update it communicated to investors today: despite a context of great difficulty, the Trieste group is achieving all its objectives and confirming its targets. With some upward tweaks, if anything: for example, financial debt has been reduced to 1,9 billion, one year ahead of the plan, while dividends, which have not been distributed this year by the will of the regulator, are expected growing to a total of 4,5-5 billion in the three-year period 2019-2021, with a pay-out of 55%-65%.
CEO Donnet returned precisely to the issue of dividends, answering questions from analysts and journalists: "I hope that in 2021 and 2022 the European regulators and those of the individual states will be more relaxed on the issue of dividends in the insurance industry, I think there are various reasons to be. On the distribution of dividends in Europe, the various insurers do not play equal and this is not sustainable in the long term”, added the French manager, specifying that instead in the banking sector the ECB has guaranteed equal treatment to banks on the issue of coupons. However, as soon as it is allowed, Generali will also pay the second tranche for the 2019 financial year, as some competitors in other countries have already been able to do: "We will do so as soon as we are authorized, the regulator explained to us that his request was linked to the macroeconomic situation and not to the specific situation of Generali, which is extremely good".
As for M&A operations, despite a difficult scenario, Donnet sent out a clear message: “We still have 2,5 billion euros, according to the plan, to be allocated to acquisitions. The scenario described two years ago (when Generali launched the current business plan) is still valid but Covid has generated new opportunities that we will certainly look at. What counts is quality, not size: therefore the price and the ability to integrate into Generali. We will be proactive, as always, on small and medium-sized dossiers but we are open to all options, always remaining disciplined according to our plan and opportunistic". “After Cattolica – added the general manager Frederic de Courtois – we will look at other opportunities consistent with our business and with great discipline”.
