By Gianluca Semeraro
VENICE (Reuters) -Generali on Thursday promised shareholders more than 8.5 billion euros ($8.9 billion) in dividends and share buybacks under a new strategy through 2027, as CEO Philippe Donnet prepares to fight for reappointment.
Investors in Italy’s biggest insurer have in the past clashed over its leadership, with Donnet backed by top shareholder Mediobanca but under attack by two billionaires – Francesco Gaetano Caltagirone and the now deceased Ray-Ban magnate Leonardo Del Vecchio.
Donnet’s mandate comes up for renewal in the spring and Generali said late on Wednesday that its board would not put forward nominees after Italy’s government changed corporate rules on succession that had been criticised by Caltagirone.
Donnet has offered to stay on for another term, Generali said. On Thursday, the CEO expressed confidence when asked at a press briefing about the upcoming shareholder vote on the new board.
“We are today presenting a very convincing plan for all shareholders, for all stakeholders, and we are very confident for what’s going to happen next,” Donnet said.
Caltagirone’s three representatives on Generali’s board failed to back the plan on Wednesday by abstaining in the vote, a person with knowledge of the matter said.
To complicate the picture, Mediobanca has become a takeover target for state-backed Monte dei Paschi after Caltagirone and Del Vecchio’s investment vehicle Delfin became shareholders in MPS.
Generali earmarked 1.5 billion euros for mergers and acquisitions under the 2025-2027 strategy, after signing a memorandum of understanding with France’s BPCE this month to set up an asset management joint venture that would have more than 1.9 trillion euros in assets.
The government has expressed reservations about the deal, saying domestic savings should be managed in Italy.
“The group will assess M&A opportunities with strict discipline, also benchmarking any potential transaction against share buybacks,” it said.
Generali committed to growing earnings per share (EPS) by 8-10% a year on average over 2025-2027 with a net cash flow above 11 billion euros, it said in a statement, lifting its previous targets.
Its shares rose 0.9% in early trading, outperforming a 0.2% gain for Italy’s blue chip index.
Jefferies analysts said Generali’s plan was a positive surprise and more ambitious than anticipated.
Buybacks would total at least 1.5 billion euros, including 500 million euros for the current year.
($1 = 0.9599 euros)
(Reporting by Gianluca Semeraro; writing by Valentina Za; editing by Kirsten Donovan and Jason Neely)
