Generali insurance companies try to project themselves after the next decisive AG

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The celebration of the large family of Generali for the inauguration of his Foundation’s future dwelling in Venice did not hide the tensions that have long driven the group. An Italian insurance company has filed a complaint with Consov, an Italian stock market police officer, against Luciano Sirina, a former head of Eastern Europe who wants to become general manager in April. He”Inaccurate and profane remarks“It was held in an interview given to the Italian press asking about the possibilities.”Violation of our obligation to provide accurate information to shareholders, investors and the market. This can change the dynamics of the market and the correct decision to vote at the General Assembly.“.

List vs. list

It is there that is at the heart of the battle that incites Italian capitalism. It is the rule of Generali. Shareholders will need to choose from two lists at the April 29 General Assembly to form the future board of directors of the insurer. Luciano Cirinà is a candidate for the post of general manager of the alternative list, presented by the group’s second shareholder, Francesco Gaetano Cartagilone construction mogul. Believing that the insurance company has lost its position against its rivals, he said, “Wake up the lionWe also provide a list of 100% Italy chaired by Claudio Costa Magna, a former Goldman Sachs banker.

Another list was created by the board of directors and supported by its first shareholder, Mediobanca, with updates to Philippe Donnet of France, head of the insurance company, and Andrea Sironi, president of the Italian Stock Exchange. I am proposing. , As president.

To convince investors, the two men have increased their meetings in recent weeks. Philippe Donnet defends the strategic plan presented by Generali Insurance Company on December 15 with the first two continuities he led. In particular, by accelerating commercial insurance and asset management, we are aiming for an annual profit growth rate of 6% to 8% from 2022 to 2024. “”The first plan is a recovery plan, the second is an optimization plan, and the third is the need to lead generali insurers to a sustainable future.“, Philippe Doné explains: Agefi.

A plan that goes against the plan

Luciano Chirina and Claudio Costa Magna want to streamline the activities of the Generali insurance company in order to achieve an annual profit growth rate of 14% during the period, aiming for a profit ratio of 54% compared to the current 65%. I am. However, while Philippe Doné’s plan offered € 2.5-3 billion and the previous plan for 2019-2021 offered € 4 billion, the investment of € 7 billion will make the acquisition more aggressive. We have adopted a policy. The idea is to increase the leverage of the group from currently around 20% to the level of competitor Allianz, 25%.

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On the contrary, Philippe Doné can expect valuable support. “”Opponents’ plans are certainly more ambitious than company plans, but after considering factors such as execution skills, feasibility, and risk, it’s unclear if they offer a better path.“Like Glass Lewis, we will review the ISS, a voting advisory body that advises to support Philippe Doné’s list. Plans defended by Philippe Doné are between € 5.2 billion and € 560 million. While promising to redistribute to shareholders, some fear that increased debt will hinder the insurer’s ability to withstand shocks and thus make it difficult to pay dividends. The result is worth 600 million euros a year, and First Cisl, an Italian labor union in this sector, has come to support Philippe Donnet’s list.

Use of caltagirone

The result may still be tight. Philippe Donnet’s list includes Mediobanca (12.9% of capital, 17.2% of voting rights), De Agostini (1.4% of capital), Union Investment (16th shareholder), the major shareholders of Generali Insurance Company. Supported by (less than 0.5%). Of the capital. The Caltagirone Group and Del Vecchio Group were formerly allies within the agreement, with the second and third shareholders of 9.49% and 6.59% of capital voting on the Cirinà list, as well as the CRT Foundation (1.7% of capital). However, according to some sources, the two groups could rise to 9.99% of capital by April 29. Institutional investors (35.2% of capital) should follow the advice of their agents, but the votes of individual shareholders (22.2% of capital) or the Benetton Group (3.96%) will be scrutinized.

In the case of victory, Philippe Doné’s list is the majority, nine or more of the board against three or four dissident managers, including Caltagirone, who put himself at the beginning of the alternative list. You will have 10 members. “”I have held this position for six years and have successfully completed two strategic plans. With a new board that challenges and supports management, we will do it again.“Philip Donne says.

However, the two key shareholders can also sell the shares of the insurance company or change the fight. More than Philippe Donnet, they criticize Mediobanca’s hanging against Generali insurance companies. However, Leonardo Del Vecchio owns 19.4% of Mediobanca and Caltagirone owns 3.1% of the Bank of Italy. The latter earns 10% of their income and 30% of their profits from the shares of Generali Insurance Company, so they will pay more attention to the outcome of the vote.

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