True Veronese, in his early fifties, with a degree from Bocconi, Alberto Minali has spent his entire life in insurance. First in Generali, where he was General Manager, and in Allianz Ras and now in Cattolica Assicurazioni, where he has been the managing director for less than two years. His arrival at the helm of the Veronese company marked the start of the great change and the opening up of Cattolica to the market. But at the beginning perhaps not even Minali thought that his company would attract the attention of Warren Buffett, the wizard of world finance who invested and asked to become a shareholder of Cattolica. "Buffett's choice - comments Minali in this interview with FIRSTonline - is certainly a sign of appreciation for the work done in recent months by the Company" which is so far the only insurance company in Italy in which Buffett's Berkshire Hathaway has invested . But let's hear from Minali how things went and what prospects the entry of a character of the caliber of Buffett opens up for Cattolica, who has become the largest investor in the Verona-based company.
A few weeks ago the General reinsurance AG, a group company Berkshire Hathaway by Warren Buffett, has requested registration in the register of members di Cattolica Assicurazioni: did you expect this after the purchase of shares that made you the first shareholder since last year, or was it a surprise for you too?
“Buffett's choice is certainly a sign of appreciation for the work done in recent months by the Company. We are a dynamic cooperative society, which has been able to open up to the market without renouncing the per capita vote. It is a source of pride for us and for all the Shareholders that an important and long-term investor like Berkshire Hathaway wants to approach the Company on a permanent basis and participate in its governance".
Because Is Buffett so interested in Cattolica Assicurazioni? Did he explain it to you?
“Buffett's investment should be read in a long-term perspective: Cattolica is a solid company that is transforming itself into an even more innovative, agile and reactive cooperative and it is normal that the large market operators look at this evolution. I always like to remember that the true value of insurance is given by the skills and experience of its people: it is an intangible value which however makes the difference, as Berkshire Hathaway well knows. We also have relationships of a technical and reinsurance nature with them, demonstrating that Cattolica's business model and work are appreciated by a major player such as Berskshire Hathaway. As further confirmation of this, I remind you that we are the only Italian insurance company in which they have invested”.
If at the end of the next Shareholders' Meeting a representative from Buffett's list joins the BoD, what will be the effects on the Company?
“The introduction of the “capital” list is part of the governance changes which have updated Cattolica's cooperative model to the needs of the market, tempering it and also giving value to the capital, because without capital there is no growth. As established by the last Shareholders' Meeting, in the event that a group of investors presents a list and this is voted by 10% or 15% of the share capital, one or two Directors will be elected, respectively, who will therefore be able to participate in the governance of the Company . At the moment it is still premature to talk about it because the lists have yet to be formed and no intention has yet been expressed. In general, having capable and competent advisers is always of value for every company”.
Could Buffett's arrival lead the way towards other international investors in Cattolica Assicurazioni?
“Attention to Cattolica is high, as evidenced by the feedback we have in international roadshows with the financial community and this makes us proud because it means that we are working well. If others want to enter our capital we will be happy to welcome them. Certainly Buffett's entry in October 2017 raised the attention towards our Company. This gives us further opportunities and pushes us to do better and better”.
In addition to the arrival of Buffett, 2018 was a year full of novelties for Cattolica with the new industrial plan and the new governance, even in the confirmation of the per capita vote and of the regime of cooperative society: for this year what will be the main innovations planned?
“As you rightly recall, we have just completed the first year of the Business Plan. We are therefore strongly committed to achieving the ambitious but realistic targets for 2020, which we have presented to partners and shareholders. In the spring, the Shareholders' Meeting will have the renewal of the entire corporate governance body on the agenda: it will be the task of the new BoD to pick up the baton of the outgoing BoD, building on Cattolica's solidity to impress its own orientation on the social life of the our Company and project it towards the new challenges of the market”.
