Generali targets higher dividends

May 29, 2015 | 20:04

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Italian insurer Generali aims for cumulative dividend by 2018 of over €5 billion, up from the current level related to FY2014 of €930 million

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CEO Mario Greco

Generali Group announced its targets on May 27 at its Investor Day. In addition, it also aims for a cumulative Net Free Cash Flow generation of more than €7 billion by 2018, up from the 2014 level of €1.2 billion.

Whilst achieving these targets, Generali commits to maintain, over the cycle, an Operating Return on Equity of more than 13 per cent.

In order to do so the group is going to build on success in selling distinct but strain-efficient life products, optimize life in-force cash generation, embed value added and fee based services into its offers and improve cost and operating platform efficiency.

“Our strategy sets out an entirely new business model for Generali and for the insurance sector focused on customer service and loyalty, data analytics, extensive use of technology and superior cash generation,” CEO Mario Greco said.

The current cost efficiency programme will continue with annual cost savings of €250 million extended through to 2018, resulting in total savings of €1.5 billion from the beginning of 2012. A total of €1.25 billion will be reinvested in technology, data analytics and more flexible operating platforms.

Generali Group is one of the largest global insurance providers with 2014 total premium income of €70 billion. With 78,000 employees worldwide serving 72 million insured persons in more than 60 countries, the group occupies a leadership position on West European markets and an increasingly important place on markets in Central Eastern Europe and Asia.

By By Khanh Tran

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