In a conversation with GEI’s President Mario Platero, who asked him about his strategic plan, also looking forward to an important annual meeting in about a month and responding to questions from attendees, Mr. Donnet set out the upcoming strategy priorities for Generali Group and how it views its development in the United States. “We have long said that the United States is an area to look at for M&A opportunities in the Asset Management space, following our disciplined and rigorous approach to create value for all stakeholders” shared Donnet. “Our Lifetime Partner 24: Driving Growth plan, launched in December, is ambitious, realistic and credible. We are promising best-in-class shareholder returns – something the market has appreciated, understanding that it is based on a track record of delivery thanks to our successful execution of two strategic plans since 2016. We estimate our future EPS growth to be between 6-8% a year. On M&A we have allocated an overall funding of about 3 billion $ all with internal financing. And this has been generally very much appreciated in my meetings with both international and domestic investors and just now here in the United States. So far we have always delivered and I noticed also in recent comments how analysts have appreciated a realistic approach in terms of our growth strategy”.
When asked about the over a century long tradition of Generali as an independent public company in Italy, its relationship to the market and the response of investors he met in the United States, Mr. Donnet stated: “Governance and its transparency has always been central to Generali history. Even more so the same is true today – it is fundamental to ensure that the Company reflects the needs of the market. The Board of Directors has taken great strides over the past years to improve and reflect the requirements of a modern, 21st century public company”.
The Generali CEO also discussed the diversification of Generali’s business – operating in 50 countries worldwide – and the risks that he views as global challenges. Mr Donnet stated: “in the United States, thanks to Europ Assistance, we are a top three player in travel insurance, a leader in medical costs management and increasingly a significant player in the cyber protection space. Cyber is a global systemic risk, with a potential for disruption we have witness from the pandemic – there needs to be a global solution to global challenges.”
Mr. Donnet also discussed the Generali’s position in Russia, reminding his audience that the Company was among the first to close down its representative office in Moscow, wind-down its Europ Assistance business in the country and resign its positions from the board of Russian insurer Ingosstrakh. While discussing the wider implications of the war on Generali, Mr Donnet said “this is another challenging scenario, but one that Generali has the strength to overcome. We were extremely resilient during the pandemic, posting record results in 2021 – a year that was significantly impacted by the crisis. If you compare the standing of Generali today, compared to how it emerged from previous global challenges, such as the banking crisis in the late 2000s, it is clear that the Group is in a far better place.
In fact, traditionally insurance groups, and we see this also in the United States, have been rewarded by the market because of their anti-cyclical tradition. While we are all worried about this horrible senseless aggression, we are confident that we can navigate well the potential negative consequences on the economy.”
Finally, Philippe Donnet explained how ESG is at the heart of the modern economy and how Generali operates. “All three elements are very important, and we are taking action. First of all, last year, we launched our revised climate strategy and co-founded the Net-Zero Insurance Alliance, which I am proud to have presented to the G-20 climate summit in Venice.” In a few days, Generali Group will open the doors of the Procuratie Vecchie, in the heart of Venice, to the public following an extensive restoration led by David Chipperfield Architects. The landmark building will become the home of Generali’s foundation, The Human Safety Net. “We share the winged lion of Venice, a well-known symbol of Italy found across the world. We are committed to rejuvenating St. Mark’s Square as it becomes a working hub for social causes worldwide. And both Venice and Trieste, where we have been headquartered from our founding days, are in a way a great symbol of our independence”.
