Investing in Generali
Investing in Generali means investing in one of the world’s major insurance and financial services company, with 185 years of experience behind it and a future that it intends to build around the pursuit of sustainable and profitable growth for communities, clients, employees and shareholders.
Our brand is recognized around the world. We are the leader in the Italian market with an overall market share of 15.5%. However, the brand’s strength is not limited solely to Italy. The company has a strong position also in Germany, France and Eastern Europe, where it is one of the leading insurance groups on the market, as well as in other high growth potential markets. In total, we are present in more than 60 countries.
We are among the largest insurance groups in the world by total premiums and assets. Established in Trieste nearly two centuries ago, Generali ended 2015 with excellent results: the net profit grew significantly to over 2 billion euro and the gross written premiums increased to over 74 billion.
Our strong international focus has been a feature of our business since its creation in 1831, during the time of the Austro-Hungarian Empire, and our international presence is our greatest strength. As a large Europe-centric company continuing to build its presence selectively, the group today can boast well-balanced geographical diversification between mature countries (such as Italy, Germany and France) and high growth potential markets.
We develop simple, integrated, customized and competitive Life and P&C insurance solutions for our clients to meet their needs: our solutions include savings policies, individual and family protection policies, unit-linked policies, mass-market insurance products as MTPL insurance, household, accident and health policies as well as sophisticated products covering commercial and industrial risks and structured solutions for multinational companies.
The insurance market is in the middle of an intense period of change. Generali decided to approach innovation on different levels, looking at global partnerships with international players that have complementary skills, and seeking to leverage the community of innovators, start-ups, and businesspeople outside of the Group to generate ideas, business models and technical solutions that can help respond to the new challenges. Throughout our history we have always shown an ability to adapt to shifts in the market, understand emerging needs in different geographical, economic and political situations, and to drive innovation in the sector.
We distribute our products and offer our services through a multi-channel strategy: we have therefore responded to the request of our customers to enable them to contact us in various ways. We aim to become an excellent provider of insurance solutions, available through a variety of channels and accessible in different ways thanks to new technologies: both through our global agents and financial advisors, and through brokers, bancassurance and direct channels. These channels allow clients to be more independent, since they can easily obtain information on alternative products, compare alternative options, purchase the preferred product and get a good post-sales service, thereby creating a positive customer experience.
We continue to hold in a sharp focus the capital position which was strengthened in 2015. Shareholders’ equity grew to € 23.6 billion and the Solvency I ratio was 164%. The Group’s high level of organic capital generation drove an increase in the Economic Solvency Ratio to 202%, as calculated under the new Solvency II principles, which entered into force from January 2016. Our strong capital position is confirmed also by the assessments of the leading international ratings agencies: AM Best – ‘A’ with stable outlook, Fitch – ‘A-’ with stable outlook, and Moody’s – ‘Baa1’ with stable outlook.
According to the strategy launched at the last Investor Day, we aim to achieve a net operating cash of over €7 billion cumulatively in the four years to 2018, while total dividends will amount to over €5 billion in the same period. The current cost reduction plan will continue, with savings of €250 million per annum from 2012 for a total of € 1.5 billion by 2018. A total of €1.25 billion will be invested in technology, data analytics and more flexible operating platforms.
We have been issuing annual dividends to our shareholders for more than 150 years. We are committed to continuing this tradition in the years to come. For 2015, the Board of Directors decided to distribute a dividend of 72 Euro cents per share to all our shareholders, an increase of 12 cents (+20%) compared to the previous year.
We believe passionately in sustainability, as shown by the group’s inclusion in the main sustainability indexes and leading international rankings. We believe that true value for communities, employees, clients and shareholders can only be created by acting in a sustainable way.
Throughout its history, Generali has always stood out for the care it shows for its staff, shareholders and local communities; care that is based on our commitment to the values of professionalism, transparency and acting responsibly. This is further confirmed by the signing of the most important international initiatives on corporate social responsibility, such as the UN Global Compact, the Principles for Sustainable Insurance (PSI), the Principle for Responsible Investment.