The global insurance sector may be affected by uncertainty due to an economic slowdown, an increase in inflation and the risks of escalation following the Russian invasion of Ukraine.
With regard to the insurance sector as a whole, growth prospects are still positive, albeit at a slower pace than those of 2021. The pandemic has highlighted the need to better protect households from situations of economic uncertainty; even the progressive ageing of the population will lead to a lower demand for savings products and a higher demand for income products and those related to self-sufficiency. Renewed interest is expected in Life protection policies (pension, Long Term Care policies, critical illness, health assistance and death coverage policies, not related to the granting of mortgage loans, loans or salary-backed loans) and P&C (income protection and creditor protection).
In this context, the Group confirms and continues with its strategy to rebalance the Life portfolio to further increase its profitability, with more efficient capital allocation, also as interest rates continue to rise. Simplification and innovation will continue to be key, with the introduction of a range of modular product solutions, designed for the specific requirements and new needs of customers, and marketed through the most suitable, efficient and modern distribution channels.
In the P&C segment, the Group’s objective for the mature insurance markets in which it operates is to maximise profitable growth and, in parallel, gain ground in high growth potential markets by expanding our presence and offer.
In the Asset & Wealth Management segment, on the one hand, Asset Management activities identified for the new plan will continue, with the aim of extending the product catalogue, in particular for real assets & private assets, and enhancing distribution competences; on the other hand, the Banca Generali group will be focused on the targets for size, profitability and shareholders’ remuneration defined in its strategic plan announced in February.
The Group confirms its commitment to pursue sustainable growth, enhance its earnings profile and lead innovation in order to achieve a compound annual growth rate in earnings per share1 between 6% and 8% in the period 2021-2024, to generate net holding cash flow2 exceeding € 8.5 billion in the period 2022-2024 and to distribute a cumulative dividend3 to shareholders for an amount between € 5.2 billion and € 5.6 billion in the period 2022-2024, with a ratchet policy on dividend per share.
1 3 year CAGR; adjusted for impact of gains and losses related to acquisitions and disposals. Target based on current IFRS accounting Standards.
2 Net holding cash flow and dividend expressed in cash view.
3 Subject to regulatory recommendations.