In Trieste, on the Bersaglieri 3 pier where the annual shareholders' meeting was held today as per tradition, harmony seems to have returned. With a few more lawsuits but with a profit of 1 billion euros in his pocket and a more than doubled dividend (9 cents against 45 in 20). So much so that the first signal of consensus comes from foreign investors who, compared to a year ago, increased significantly in the shareholders' meeting, rising to 2012% from 15,28% at the 12,2 shareholders' meeting and from 2013% in 9,2, while the other major Italian shareholders remained substantially stable. The Blackrock fund, which has recently been very active on the investment front in Italy, does not appear to have deposited any units directly, compared to the presence of 2012% at last year's meeting. The greater presence of foreign investors certainly reflects the renewed and generalized interest of recent times for the Italian market, as evidenced by the movements of various international giants, primarily Blackrock, in various Italian companies (from Mps to Pirelli). But also the realization of the results of the work of the CEO Mario Greco, who not surprisingly brought the Investor day to London and launched a "more market" phase with the exit from the agreements and the disengagement from non-core investments.
2013 ended thus, in the words of Greco himself, with the best results "in the last five years, without any extraordinary contribution". Greco underlined that the dividend represents a yield of 2,6% with respect to the value of the share at the end of 2013 (17,10 euros) which, "together with the 25% revaluation of the share during 2013 constitutes an encouraging recovery of profitability for all” shareholders. As some small shareholders underlined in their speech at the meeting which approved the financial statements and among other things appointed the Board of Statutory Auditors, however, there is still some road to cover in order to catch up with the main international competitors. An aspect which is also affected by the group's current priority of working to rebuild capital solidity. “This year we are slightly below the pay put of 40% (indicated in the dividend policy ed) and although we have improved the dividend we are below Generali's capabilities. Rebuilding the solidity of Generali is our primary concern and activity. We count on being far ahead in the capital development plan and on reaching these objectives ahead of time” explained Greco, playing the raise: “Once the objectives have been achieved, we count on reviewing the dividends in an improvement sense for the shareholders. "The company must make more profits, it will also make more profits in 2014 and we are all aware and sensitive to seeing Generali's market value return to where it once was", he said in reply to the small shareholders, reiterating what he said in his opening speech: “Our goal remains the same: to bring Generali back to market leadership while guaranteeing high returns for our shareholders”.
In this context, Greco, who defines 2014 as a complex year but looks to the next two years with confidence, also said that for next year some proposals also advanced by some shareholders will be evaluated, such as the assignment of an extra dividend to drawers. Greco recalled that the group's capital solidity improved significantly in 2013 and "will continue to improve in 2014". The goal is to exceed 160% of Solvency I by 2015, today the index is over 150% after the payment of the dividend and the benefits of the disposals and careful management of liquidity. Maintaining the group's capital strength was the most important element in maintaining unchanged in the face of the threat of S&P's cut. On the front of the sale of BSI, Greco said that "contacts with possible buyers are continuing but there are no definitive agreements".
Foreign investors also like the new course oriented towards leaving the Italian relational system, sanctioned by the exit from the syndicate agreements and the disposal of investments not linked to the core business. In this regard, Greco confirmed that the two windows for Telco's exit are set for June 2014 and February 2015. In September 2013, Generali reached an agreement with Telefonica which made it possible to reduce the already 19% exposure of Telco to one valuation of 1,1 euro per Telecom share.
The results seem to have restored unity even among the major shareholders, as Chairman Galateri is keen to underline at the opening of the meeting: "The work of the Board - he said - takes place in harmony even where the dialectic is strong, but always without conflicts, and giving coherent support to management”, which made it possible to address “the need to put things in order and to clarify past actions which are sometimes very controversial”. Galateri also explicitly refers to the legal action against the former CEO Giovanni Perissinotto and the former general manager Raffaele Agrusti. "I want to reiterate - he said that these actions were decided in the sole and exclusive interest of the company, its policyholders and its shareholders".
On 29 May, Galateri announced in response to questions, the hearing will be held in which Generali's request to join the appeals against the two former managers will be discussed. The company, Galateri always said, "has not promoted initiatives" on the criminal level against the former directors, "is aware of the opening of investigations by the Trieste prosecutor's office and is available" to the investigators. The investment transactions under investigation "were carried out through the subscription of debt securities issued by foreign companies without the involvement of the corporate bodies, without adequate investigation, and without obtaining guarantee instruments" and coverage. No legal action then against Finint, the financial company of Enrico Marchi and Andrea De Vido, involved in three of the seven transactions passed under the examination of the board with which Generali has relations for 200 million euros. In any case, Il Leone is studying in depth all the initiatives that could be undertaken in relation to the investments in question from the past management. “We are Finint shareholders with a 10% stake purchased in 1999 – Greco said – We have just been regularly repaid a bond of 50 million. We are recovering on another exposure of about 40 million. We've reduced this exposure to about half." On the front of the exposure with Veneto Banca, a shareholder of the Leone through Ferak, Greco affirmed that it stands at 300 million.
From the update of the shareholders present at the meeting, it emerged that the major shareholders remained stable: Mediobanca at 13,27%, CDP at 4,482%, Leonardo Del Vecchio at 3%, B&D of the De Agostini group at 2,43%, Caltagirone at 2,232%, Ubs at 2,16% and Effeti at 2,151%. Under 2% unchanged Cariplo at 1,52%, Inv 1,35%, Ferak at 1,02% (which deposited the shares, but is not present), Edizione 0,96%. Cassa Forense was absent among those who deposited the shares, which last year was at the meeting with 1,01%.
