9:41:45 AM | 5/29/2015
The Generali Group hosted an Investor Day to set out its new strategic priorities on 27 May. The day outline how Generali is going to transform its business model with leaner and more efficient operating platforms to deliver a superior customer experience and a distinctive brand positioning.
The Generali Group CEO, Mario Greco
The Generali Group CEO, Mario Greco, said: “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. The goal is to set ourselves apart from competitors and manage challenges facing the industry by making Generali the retail insurance leader in Europe. To reach this ambitious target we will build on our unique strengths including a large customer base in Europe, one of the world’s largest agency distribution networks and best-in-class technical capabilities. Furthermore, we will act fast with the confidence that derives from the successful completion, one year ahead of time, of the turnaround strategy we launched in 2013.”
With the new strategy the Group aims for a cumulative Net Free Cash Flow generation of more than €7 billion by 2018. The current level of cash generation (2014) is €1.2 billion. Cumulative dividend by 2018 will amount to over €5 billion. The current level of dividend related to FY2014 is €930 mln. Whilst achieving these targets, Generali commits to maintain, over the cycle, an Operating Return on Equity of more than 13%, which represents the reference benchmark for the Group.
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.
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