Profits up 40% in the first nine months of 2013 for Assicurazioni Generali. Against total premiums stable at 49 billion (+0,6%), profits in fact amounted to 1.591 million euro. “We are making good progress in transforming the group and the results we present today demonstrate that we are well positioned to achieve our goals. We will now focus even more on improving our profitability,” said group CEO Mario Greco who is leading the Lion in its first full year following his arrival in June 2012.
The results exceeded analysts' expectations. The operating result improved by 6,2% to 3,4 billion, driven by the non-life segment (+20,3% to 1,3 billion) which benefited from an improvement in the combined ratio to 95,1% (-1,6, 2 points). The operating profit of life fell by 2,1% to 32,8 billion. Premiums are split between 0,9 billion (+16,2%) in life and 0,1 billion (+1,1%) in non-life, with new life business in Ape terms up by 3,2% to XNUMX, XNUMX billion.
In terms of equity indicesi, Solvency 1 as at 30 September had risen to 143%, from 139% in June. Also taking into account sales in the USA and Mexico (5 points of positive impact), it stood at 152% in October. "Thanks to the actions undertaken in the last few months - Greco said in the release of the data - we have achieved a significant improvement in the financial situation, with a Solvency I index which, today, exceeds 150%".
In the meantime, the appointment to the vice presidency of Clement Rebecchini, former member of the Control and Risk Committee and of the Investment Committee, board member since 2012 and central manager in charge of the Principal Investing division of Mediobanca. Rebecchini replaces Vincent Bollorè, who resigned at the beginning of October. On the Stock Exchange, the share at the start moves slightly below parity (-0,06%)
IVASS REQUESTED A NEW EVALUATION OF THE LIABILITY ACTION
Yesterday evening, in a note from the group published at the request of Consob, Generali communicated that IVASS, with regard to investments in private equity and alternative funds with respect to which irregularities have been highlighted in terms of internal governance, asked the board of directors for a new evaluation on the liability action against Giovanni Perissinotto and Raffaele Agrusti, adequately justifying the decision taken. Just as you asked a new assessment on the adequacy of severance pay by Raffaele Agrusti and the CEO Perissinotto, also considering “the possibility of resorting to the application of claw-back clauses”, or other recovery initiatives. Finally, IVASS requested that "the board of statutory auditors present its own independent assessments regarding the aforementioned board resolutions". The reference is "to investments in private equity and alternative funds made in the past with respect to which irregularities have been highlighted in terms of internal governance", even if not explicitly mentioned these are the transactions carried out with Palladio, Finint and Amenduni.
THE GOODNESS OF AGRUSTI FOR THE CONSENSUAL TERMINATION
In the note, published at the request of Consob, Generali provided further information relating to the investigation activities carried out by the Company in relation to these investments. In particular, the group communicates that the board of directors has excluded the existence of profiles of criminal relevance in the behaviors that emerged against the former CEO Perissinotto and the former CFO Agrusti, and has decided, "in line with the legal opinion acquired", not to proceed, at present, with possible compensation actions against the managers "mainly in consideration of the difficulty of linking the irregularities that have emerged to damages that can be compensated under the law (and therefore supported by the necessary evidence regarding their existence, foreseeability and extent), taking into account, among other things, that some of the investments under investigation have not yet reached maturity, even if, when necessary, the due write-downs were entered against the foreseeable losses, as well as the possible reputational impacts".
Generali then resolved, “on the basis of an overall assessment of the Company's interest”, to implement a consensual termination of the employment relationship with Raffaele Agrusti acknowledging, in addition to normal employment and severance entitlements, a gross amount of approximately 1,8 million euros by way of indemnity in lieu of 12 months' notice and a further gross amount of approximately 3,3 million by way of incentive on redundancy, calculated in application of the Company's remuneration policy and therefore in an amount equal to 24 months' salary of "recurring remuneration". "A part of this amount (equal to 100.000 euros gross) - add Generali - was recognized as consideration for Raffaele Agrusti's waivers of any claim connected to the execution and termination of the relationship and of the other offices held on appointment by the Company". On the other hand, the agreement in question does not provide for waivers or indemnities in favor of Raffaele Agrusti other than and additional to the normal provisions contained in the National Collective Labor Agreement or non-competition agreements.
