The aging of the population is a great opportunity for the insurance sector and for this very reason Europe is by no means to be considered a saturated market. This is the guideline of the interventions, at the opening of theGenerali shareholders' meeting in Trieste, by the CEO Philippe Donnet and the president Gabriele Galateri di Genola: “Europe – said the French manager, referring in particular to Germany, where the presence will be stronger after the Leben operation – will remain one of the most attractive markets . Many consider it saturated, but this is not the case for us: it has great potential. Its population is aging and has to face needs that states are less and less ready to meet, such as pensions and health care”.
It is precisely on this front that the business of the winged lion will focus, which will increasingly focus on technological innovation, without however forgetting physical distribution, "which will remain fundamental through the central role of agents", and on sustainable investments. And above all on a new insurance paradigm, namely that of becoming a "life partner" of customers. “We will offer damage protection but also prevention and service – he argued Donnet, at his fourth meeting as number one of the Italian group -. Ultimately our aim is to help people build a safer future by taking care not only of their money but also of their lives”.
An ambitious goal, which in the 2015-2018 industrial plan, which has just ended, has produced even better results than those announced. In 2018 alone, the net result grew by 9,4% compared to the previous year, and in the current plan, expiring in 2021, it has already been established that earnings per share will grow at least 6% annually and potentially up to 8%. As regards the dividend, the one that is submitted to the shareholders' meeting and that will be paid out in May is 5,9% higher than that of 2017, reaching 0,9 euro per share. “In the plan that has just been concluded – explained Donnet – we have distributed 5,1 billion in dividends, compared to the 5 billion envisaged. We have also generated 8 billion of operating cash, while four years ago we estimated to generate 7 billion”. Which also opens up to possibility of acquisitions, especially in the asset management business, as confirmed by the French manager when answering questions from shareholders: “In that business we want to grow by something between 15 and 20%, with the possibility of making acquisitions. We will be disciplined and opportunistic at the same time.”
The results also seem to have paid off on the Stock Exchange, at least in the most recent period: starting from November 2016, when the latest plan was updated, the Generali share gained 48,6%, against 18,2% of the Eurostoxx insurance index . Also the plan presented last November, which confirms the three cornerstones of the Donnet doctrine (profitable growth, capital management and financial optimization, digital transformation) and which will offer "innovative solutions that will give more added value and will be more resistant to market volatility" , investors liked: since then the stock has gained a further 22,2%, compared to +13,6% of the sector Eurostxx and +19% of the Ftse Mib. However, there are also those who point out that in the last 12 months, ie in the period between the last two shareholders' meetings, the stock has grown by only 2,2%.
The CEO of the Trieste group also wanted to recall Generali's commitment to the great global challenge of the moment: the environment. "From here by 2021 we will make 4,5 billion in green investments and we will expand the product offering for so-called responsible clients, i.e. those seeking sustainability in their investment portfolio. Furthermore, The Human Safety Net project, designed to combat situations of extreme inequality, is now active in 18 countries". President Galateri also spoke on climate change at the opening of the meeting, recalling how "many damages caused by natural disasters are not covered by insurance today: our role is to prevent, mitigate and cover them".
The meeting was also called to renew the board for the next three years. Despite some tensions between the shareholders, the confirmation of the top management, starting with the CEO Philippe Donnet and the president Gabriele Galateri, was taken for granted, with the new Board of Directors which will be 11 thirteenths identical to the outgoing one. This despite the growth of the presence of large Italian groups in the capital, with Caltagirone (confirmed as vice president) at 5%, Benetton having gone from 0,94% three years ago to 4%, and Del Vecchio having risen from 3,16% a year ago to 4,86%. In 2016 these three shareholders attended the shareholders' meeting with 7,1%, today with almost double, but despite this, in the list presented by Mediobanca (still the first shareholder with almost 13%) they were not given greater representation on the board of directors .
