Generali, in the new plan up to 5.6 billion dividends and 3 billion for acquisitions

Generali unveils its new strategic plan, the third signed by group ceo Philippe Donnet. The 2024 strategy of the insurance company foresees an annual growth in earnings per share between 6% and 8%, net cash flows at the level of the parent company over 8.5 billion euros and cumulative dividends between 5.2 and 5.6 billion, up from 4.5 billion in 2019-2021. “With our new plan we will make a further qualitative leap and confirm Generali as an innovative group focused on customers and data usage”, commented Donnet. The plan was positively welcomed by the market, with the stock gaining 0.84% ​​in Piazza Affari at 18.6 euros, after the non-unanimity registered yesterday at the board of directors called to approve it: 11 out of 13 votes in favor. Contrary the deputy vice-president, Francesco Gaetano Caltagirone, and the absent Romolo Bardin, representative of Leonardo Del Vecchio’s Delfin. With the two strong partners who, albeit in different ways, expressed their opposition to the French manager’s strategy. For his part, Donnet did not comment on the outcome of the board. “The board has approved the strategic plan we are presenting today,” he merely said. The new plan, called ‘Lifetime Partner 24: Driving Growth’, is based on the insurance business, growth in asset management and investments in digital and technological innovation. In particular, the group will invest 1.1 billion euros in digitization, up 60% compared to the plan that ends this year. On the acquisitions front, one of the points most criticized by the shareholders Del Vecchio and Caltagirone, Donnet explained that “M&A cannot be planned”, but over the course of the plan, Generali estimates 2.5-3 billion euros of cash flow. cash to be reinvested in initiatives aimed at profitable growth and value creation, including M&A transactions. For possible acquisitions in asset management, Generali looks to opportunities in the United Kingdom, the United States and Asia, “the largest and most relevant markets”. In the insurance sector, on the other hand, “we want to strengthen our market position and we want to be focused on the countries in which we already operate, such as Asia, where we are present in selected growth markets and where we want to grow further, as we did in Malaysia. “, has explained.