After green light from the Leone board of directors, arrived on Monday evening, Generali and Bpce announce the signing of a memorandum of understanding non-binding for the creation of a a joint venture between Generali Investments Holding and Natixis Investment Managers. Generali and Bpce will hold 50% of the company born from the combination, with balanced governance and control rights.
From the operationand "one of the greatest global champions will be born with 1.900 trillion of assets under management, ninth in the world for AUM and leader in asset management in Europe”, as well as the world's leading operator for AUM in the management of assets for insurance customers, with a complementary presence in France, Italy and the United States, the two companies said in a statement. Closing is expected in early 2026.
Generali-Bpce: all the numbers and details of the operation
The company that will be born from the joint venture between Generali and Natixis will be established in Amsterdam, while France, Italy and the United States will remain operational hubs and continue to directly manage business activities.
The newco will have 1.900 trillion assets under management, 4,1 billion in revenues e 700 million adjusted net profit, 210 million synergies, to which should be added another 70 million (always gross) of synergies still extractable from the Conning and Mgg operations, and the transfer of assets and activities for a total value of approximately 9,5 billion. Generali Investments (GIH) will contribute over 630 billion in assets under management, while BPCE's contribution, through Natixis Investment Managers, will be 1.300 billion, Generali CEO Philippe Donnet explained in a press call.
Going forward with the details, Generali will put on the table 15 billion euros of seed capital and acceleration in five years. This is, Donnet explained, an allocation of capital (partly insurance reserves) that Generali gives to asset management to start new investment initiatives or to accelerate existing initiatives, also to attract resources from other customers. A contribution, therefore, that the Lion will give to its own companies and affiliates.
As expected, the agreement will last 15 years, but “if the first 15 years are successful we hope to continue for another 50,” said Philippe Donnet.
As expected, Natixis will enjoy a preferential route in collecting dividends in 2026 and 2027 (125 million per year). Generali Investment Holding, for its part, will benefit, in the same period, “from the repayment tranches of a loan linked to the financing of the recently announced acquisition of MGG”, equal to 230 million euros.
The shared goal is to “continue to develop the platform as a global leader and expand further in the growing segment of third-party insurance asset management.”
Governance
It is a equal joint venture, with Natixis and Gih each holding 50% of the company resulting from the combination, “with balanced governance and control rights”. “Bpce and Generali would retain full authority over asset allocation decisions for their respective assets”, a note specifies.
According to four forecasts, the CEO of Bpce, Nicolas Namias, will be appointed president, while the CEO of Generali Philippe Donnet will hold the position of vice president. The CEO will instead be Woody Bradford, current CEO of Gih, while Philippe Setbon, current CEO of Natixis, will take over as Deputy CEO.
The potential combination, subject to customary regulatory approvals, is expected to close in early 2026.
Donnet: “the jv is a unique opportunity, loss of sovereignty for Italy? A joke”
“The creation of a Joint Venture with Bpce would represent a unique opportunity to create the leading asset manager in Europe and among the top ten globally. A company with strong roots in Italy, France and the United States, able to respond to the evolving needs of clients, led by Woody Bradford, Philippe Setbon, Nicolas Namias and me,” Donnet said in a statement.
“Our home country, Italy, and all the other markets where we serve our customers, would benefit benefit from an even more robust asset management platform and with strengthened investment capabilities, capable of bringing real benefits to the economy – continued the manager -. This partnership with Bpce, with which we share a similar culture and operational approach, provides the ideal conditions for a smooth and successful integration of our combined businesses. The joint venture represents a fundamental stage since we launched Generali’s asset management business seven years ago and confirms the important results achieved over the last strategic cycles. I am immensely proud of the great work done by our employees and affiliated companies over these years”.
Answering in a conference call with the agencies, to those who asked him about the discussion in the board of directors and the opposition from some members and advisors to the joint venture with Natixis, Donnet explained that “the vast majority of the board of directors approved the operation with Natixis, I am very happy for the team, also for having heard very enthusiastic comments from the advisors”.I'm not very worried, you can't be when you submit such a beautiful and transformative operation to the board,” he added.
About possible liability actions, also aired in this case by dissenting shareholders, the manager clarified: "I do not comment on hypothetical initiatives of some shareholders", while he dismissed as “joke” (joke) the theme, always raised by some critics, regarding the potential loss of Italian financial sovereignty resulting from the agreement. "Our investments do not change, Italians' savings are in Italian insurance companies and will remain in Italy, they will own the assets and decide the investments,” he said.
Donnet has finally also proven to be very confident on the golden power theme: “We are very confident that the benefits of this transaction for all stakeholders including Italy will be recognized, we will create a global asset management platform with great capabilities, we will be bigger than ever and we will be able to attract capital to Italy: customers, employees, Europe, and the market in general will benefit from this”.
Analysts' opinion and the stock market's reaction
The stock market spotlight is on Generali, with the title that has changed direction several times and is currently giving up 1% to 29,12 euros.
"The operation is expected to generate 210 million in gross synergies, of which 170 million from costs (efficiencies, simplification, greater scale for IT) and 40 million from revenues. To these must be added 70 million in gross synergies that Generali still has to extract from the integration of Conning and the recent acquisition of MGG", highlighted the analysts of Equita, according to whom "the operation is expected to have a overall neutral impact at Solvency level of the Trieste group. The integration, however, the experts underlined, "is expected to have a positive impact on earnings per share already in the first year and a positive impact on earnings exceeding 100 million, with run-rate synergies (2.5% of expected 2024 earnings)”. Equita recommends caution ('Hold') on Generali, with a price target of 26,5 euros.
(Last update: 12.02 pm on 21 January).
