Our Strategy

The Generali Group’s strategy in the next three years is based on the following key strengths:

  • strong brand, especially in core countries;
  • enviable wide and diversified international presence, with some excellent competitive positioning in both mature and emerging markets;
  • large premiums and assets base that position Generali among the top insurance groups in the world;
  • a consolidated leadership in life and strong performance in P&C segment.

Starting from the abovementioned points, Generali developed a turnaround strategy to improve shareholders returns and maximize the profitability of its existing business, based on following three key points: discipline, simplicity and focus on core insurance business.

Fundamentals of the strategy

Distribution Opportunities

We want to offer clients multiple distribution channels (both proprietary and thirdparty) that they can choose according to their needs and preferences, and shifting habits. These multiple access points have to strongly interact and complement each other in order to offer superior customer experience and maximize customer value for the Group.

We aim at pursuing excellence in the management of sales channels. We strengthen both traditional and direct ones, implementing and disseminating internal and external best practices to identify all potential levers (e.g. incentive systems, frontend applications, sales-funnel optimization, reduction of administration tasks for distributors) that can improve our productivity and economics. However, we also put a strong attention to new distribution opportunities, such as bancassurance agreements especially in many emerging markets where we have decided to operate.

Life Performance

We re-confirm our commitment to the life insurance business. Its profitability should be increased by optimizing returns on absorbed capital, focusing more on protection products, streamlining operations and reviewing distribution incentive systems. In order to strengthen the technical performance, we are introducing Group-wide standards and fostering best practice sharing on key elements along its value chain such as pricing, risk selection, and leakage reduction.

Portfolio Footprint Optimization

We are consistently pursuing our growth strategy in emerging markets, namely Asia, Central and Eastern European countries and LatAm.
Within LatAm, we have identified Brazil as a key market, and we are committed to capture profitable growth opportunities in other Latin American countries, building on our long tradition in the region.

 

The Group’s goal is to reshape its approach to deliver top quartile shareholder returns and profitability through discipline, simplicity and focus, through:

  • focus on core insurance business, with greater contribution from P&C;
  • stronger capital position and disciplined balance sheet management;
  • superior customer acquisition and retention, with a focus on retail and affluent space;
  • consistent technical excellence and tight control of costs.

Customer Opportunities

Our strategy is to be client centric. We understand the importance of focusing on loyalty maximization and long-term value creation.
We will maximize the value of our current customer base, by improving retention and increasing cross- and up-selling. Since information availability is crucial in this process, we will invest in acquiring a broader knowledge of our customers, in order to better assess their specific needs and accordingly tailor appropriate solutions.
Particular focus has been dedicated in targeting the affluent segment, given its relevant size and growth pattern in both mature and emerging markets. A key success factor will be the creation of distinctive integrated solutions for each stage of the customer lifecycle, enabled by a proper architecture for the operating model.

P&C Performance

We aim at giving to P&C business a stronger weighting, capturing new opportunities both in business lines (e.g. Accident and Health) and in client segments (e.g. Corporate and Commercial).
We will further excel in our technical performance by centralizing reinsurance and focusing on all levers of value creation.

Superior Operating Model

Our objective is to optimize the operating model, pursuing a strong and continuous efficiency and greater integration of the main processes across our companies to reduce our costs, particularly in IT, procurement and real estate facilities.
We will also aim at attracting and investing in the best talents and developing their skills to properly execute our strategy going forward. We invest in international careers and mobility, as well as we focus on incentive plan for our top management which aligns reward to the Group strategic objectives and success and not only to the success of their business units.

Balance Sheet Strenght

Our goal is to strongly increase our capital position as capital is what allows us to take risk onto our balance sheet. Trade-offs between strengthening, earnings and cash will be optimized.

 

Taking into consideration the abovementioned strategy elements, Generali believes that value is created by focusing on the following primary stakeholders:

Primary stakeholders

As for the financial community, which encompasses institutional equity and debt investors, financial analysts, and rating agencies, the Group is committed to transparent, timely and relevant communication.

We engage financial market participants by means of:

  • results reporting: the Group provides regular, detailed analysis of our financial performance, through our results reporting package (comprising Management Report, Analyst presentation, and other supporting data, in addition to a video presentation of the key developments from our management team). We supplement this with a Q&A conference call and webcast on results day, which gives analysts and investors the opportunity to directly engage with the Group’s senior management.
  • Regular press releases: in addition, we issue timely press releases concerning any material developments within the group outside of normal financial reporting.
  • Investor Days: we aim to host Investor Days normally once per year. These important events give us the opportunity to discus more deeply with the financial community our key strategic and performance ambitions.
  • Management roadshows and meetings: our senior management and IR officers regularly travel to meet with members of the financial community in major financial centres around the world. In addition we host "reverseroadshows" and other ad-hoc meetings.
  • Major conferences: Our senior management team and investor relations officers present at a number of the most eminent and well attended investor conferences.
  • Generali.com: the Investor Relations section at www.generali.com contains a variety of useful information, including information on our shares and debt securities in issue, current and previous results, reports and presentations, details of financial analyst coverage, and other information.
  • Investor Relations team: The Group’s experienced investor relations team is always available to answer questions from the financial community.

 As for the other stakeholders abovementioned, they are described in the dedicated sections:

Assicurazioni Generali S.p.A. - C.F. e P.IVA 00079760328