GENERALI WHICH FUTURE ?

GENERALI WHICH FUTURE ?

Assembly

The Assicurazioni Generali assembly of 29th April 2022 saw Philippe Donett confirmed at the helm of the Company of Trieste for the third consecutive term with 39.5% of the total shares, while the competing list led by the roman entrepreneur Gaetano Caltagirone registered on 29,4%.

The aforementioned competitor list has tried to reach the top of the Trieste Bord, by requesting an improvement in the economic results of the company and the manifestation of the CEO, suitable for the current and upcoming competitive battles. But these efforts have not achieved the desired results.

Strategic situation

Quoting William Shakespeare, the same would perhaps have finally expressed: "Much ado about nothing." Since some themes have been on the table of the company headquarters of Trieste for some time, although all of which pretend to be silent; but sooner or later the winged lion will have to definitively indicate the route to choose. With a little brazenness, below I represent the open questions in Generali:

1. Company dimension

Generali are chasing the rankings of the largest and best European insurance companies, but it has not been able to reach the podium for some time. In this way, the Company risks sooner or later being object of the stock market attention, with the consequent possibility of losing its autonomy.

2. Main shareholders

The main shareholder of reference is Mediobanca with 17.2 per cent, but its role must be definitely strengthened, perhaps by finally creating a single financial conglomerate “Bank plus Insurance”. Or Generali will have to find a new travel companion, eager to share the dangers but also the opportunity to do new business. I can't resist taking a pebble out of my shoe ... the small shareholders like myself, present in the company both personally and through participation in investments funds, represent about 51 percent of the total, they are certainly interested in a good dividend but also more consideration and representation in the company!

3. Business Model

Along with dimensional growth; the Group specializing in the distribution of life insurance must insist on proposing itself in the money management segment, further pushing Banca Generali to reach geographic areas and an increasingly consistent clientele. As it is well known, the French presence in Italy has for some time been mainly interested in intercepting Italian managed savings, with or without Anima.

Apart from the only sketchy mental exercise, Generali must necessarily choose a very fast and decisive path. As it is better that in the great ocean of insurance the Company plays the role of the shark rather than the minnow.

Marco Ferfoglia