In a quite challenging market context, Generali priorities are to consolidate the leadership in Europe and strengthen the position in high-potential markets, with an ambition to profitable growth, combined with financial optimisation as well as innovation and digital transformation.
SOME DATA ON THE OUTLOOK FOR 2019
The first few months of 2019 saw a continued overall slowing of economic growth and trade tensions between China and the United States, as well as weakness in the economies of industrialized countries.
A number of critical issues persist, such as Brexit, a general decline in interest rates, as well as an uncertain sentiment in the financial markets. In this context, the Group is effectively implementing the activities envisaged in the ‘Generali 2021’ strategic plan, whose priority is to consolidate its leadership in Europe and strengthen its position in high-potential markets, financial optimization, innovation and the digital transformation of the operating model.
In the Life segment, presentation of the strategy to rebalance the portfolio towards capital-light products continues. In the P&C segment, premiums are forecast to improve in the primary geographical areas of operation of the Generali Group, while maintaining the same levels of technical excellence with a significant focus on high growth potential markets. Lastly, in the Asset Management segment, actions will continue during 2019 to implement the strategy.
Despite the renewed pressure from rate trends, the Group confirms its targets for the next three years which forecast an increase in earnings per share of between 6% and 8%1 an average RoE of more than 11.5%2 and a target pay-out ratio between 55% and 65%3.
1Three-year CAGR; adjusted for impact of gains and losses related to disposals.
2Based on IFRS Equity excluding OCI and on total net result.
3Adjusted for impact of gains and losses related to disposals.