Generali 2021: Strategy confirmed and full commitment to financial targets
18 November 2020
- The Generali 2021 strategy has proven to be the right one, demonstrated by the results we achieved in the current environment.
- GROWING EARNINGS PER SHARE: 6%-8% EPS CAGR RANGE 2018-21 1
- GROWING DIVIDEND: € 4.5-5 BILLION CUMULATIVE DIVIDENDS 2019-2021; 55%-65% DIVIDEND PAY-OUT RANGE 2019-21 SUBJECT TO REGULATORY ENVIRONMENT 2
- HIGHER RETURN FOR SHAREHOLDERS: 2019 AND 2021 EXPECTED ROE >11.5% WHILE 2020 ADVERSELY IMPACTED BY COVID-19 AND ONE-OFFS
- Financial debt reduction stands at € 1.9 billion: meeting the higher end of the target range one year ahead of the plan
- Additional € 100m recurrent savings by 2021: from the original €200m expense reduction target – up 50% to € 300m 3.
- Effectively navigating the COVID-19 pandemic by leveraging Generali’s core strengths: clear strategy, focus on technical excellence, strong distribution network and a diversified business model.
- Proactive and decisive actions taken to minimize the direct business impact of the pandemic, protect shareholder value and support customers, agents and communities including €100m extraordinary international fund deployed across 25 countries.
- Clear strategic priorities to deliver Generali 2021 and beyond:
- Maintain disciplined approach to managing cash, capital and redeployment
- Deliver strong results in Life and P&C leveraging best-in-class technical expertise
- Further enhance multi-boutique asset management strategy
- Increase customer preference while increasing digitalization of distribution channels
- Relentless focus on expenses
Milan. Generali will today meet with the financial community for a virtual Investor Day to provide an update on the progress of its three-year Generali 2021 strategy, confirming its ability to deliver the financial targets by effectively navigating the global COVID-19 crisis, and confirming the core convictions at the heart of its strategic plan.
Generali Group CEO, Philippe Donnet, stated: "Our Generali 2021 strategy remains effective and even more valid in the current market context. The Group is navigating the most serious post-war global crisis by leveraging its strengths: disciplined strategy execution, focus on technical excellence, strong distribution network and a diversified business model. These strengths, combined with our solid capital position and excellence in innovation, allow us to fully commit to the financial targets of our strategy and to be well-positioned to capitalize on future opportunities. Two years after the launch of the plan, we are maintaining our commitments to all stakeholders, thanks also to the empowerment of our people, an increasingly strong brand and our growing commitment to sustainability.”
1 3 year CAGR; adjusted for impact of gains and losses related to disposals.
2 Adjusted for impact of gains and losses related to disposals.
3 Insurance Europe