Useful to approximately 4,2 billion in 2024, with 2021-24 average annual EPS growth above 14%, a cash available for M&A activities up to approximately 7 billion and one greater cost cutting, with a cost/income target of 55% from the current 64%. These are the main numbers of the strategic program to 2024 "Awakening The Lion", Awaken the Lion, presented today by Claudio Costamagna and Luciano Cirinà, candidates respectively for the office of chairman and managing director on Francesco Gaetano Caltagirone's list for the Generali Board of Directors. It is, in essence, a counter-plan with respect to the one presented by the CEO Philippe Donnet. The showdown will take place at the meeting on 29 April.
Cirinamoreover, he was already a manager in Trieste with responsibility for Eastern Europe, a position from which he was suspended precisely because of the choice to side with Caltagirone against the list drawn up by the current board.
The landing point of the strategic plan presented today is a "full potential" net profit of 4,2-4,6 billion in 2024 and over 5 billion in 2025-2026 against 2,8 billion in 2021.
According to the Caltagirone list, Generali, which has seen its positioning "weaken over the years", needs of a new strategy with a repositioning and with higher ambitions, based on five strategic levers (including the maximization of available cash up to 7 billion to carry out large-scale M&A), and requires governance with high standards, made up of zero tolerance for conflicts of interest and a rebalancing of powers of the CEO and an independent and competent list.
The plan also includes a cash generation cumulative available for approximately 9,5-10,5 billion in 2022-24 and 1,5-1,6 billion investments in digital and technological transformation. On the front M&A, the new strategy will be based on a limited number of larger P&C deals in relevant geographic areas, in asset and wealth management, Fintech and Insurtech. One is therefore expected in-depth review of geographical presence: consolidation of the leadership in Italy, France and Germany, growth in Eastern Europe, China and India and development of the presence in the USA, especially in the asset management field.
Confirmed is the dividend plan announced at the Investor Day on 15 December for the three-year period 2022-24 both the share repurchase.
“We wouldn't have any type of hesitation to make a capital increase if there were a convincing operation capable of creating value in the medium to long term for shareholders: I don't see why we couldn't do it - he said Costamagna – Today we have potentially available cash for M&A of up to 7 billion, which is already a significant amount, so we don't have to make any increases, but if it's needed to make a big deal we'll take it into consideration”.
Cirinà then focused on his own working situation: “I asked for unpaid leave, which was rejected due to the Ukrainian crisis, and this week I was informed of the suspension which legally is not a disciplinary procedure. I do not deny my 30 years in Generali and having participated for the part of my competence in the group plan presented in December, but the reasons why I decided to join the Caltagirone list are not part of this conference".
According to the CEO candidate, “what is being presented today is an ambitious but absolutely feasible strategy. The first point is to review the geographical positioning, focusing on where we can achieve profitable and sustainable growth".
Meanwhile, Francesco Gaetano Caltagione's stake in Generali it has come to exceed 9%, from the previous 8%. This was announced by the Roman entrepreneur, on the sidelines of the presentation in Milan of his counter-plan on the Lion.
