Generali new revamp plan strengthens CEO hand (updated)

Caltagirone SpA

27/01/2021 19:20

(Recasts with statement, combines with sources, adds values)
    By Gianluca Semeraro, Claudia Cristoferi and Stephen Jewkes
    MILAN, Jan 27 (Reuters) - Italian insurer Generali  GASI.MI 
has approved a shake-up plan that will strengthen the hand of
Chief Executive Philippe Donnet to speed up delivery on targets
and develop key business areas such as asset management.
    As part of the plan the insurer's No 2 executive, Frederic
De Courtois, will leave the company as his position as general
manager is abolished, confirming what sources earlier told
Reuters.
    The plan, drawn up by Donnet and approved unanimously by the
board, aims to make Generali nimbler as the COVID-19 pandemic
takes its toll on households and businesses.  urn:newsml:reuters.com:*:nL8N2JP5I3
    This year marks the end of the strategy Donnet unveiled late
in 2018 and some analysts are worried fallout from the health
emergency could go deeper than expected.
    De Courtois, who like Donnet is French, will leave the
company on February 1. Donnet and De Courtois are both former
managers at French rival Axa  AXAF.PA .
    
    FRENCH CONNECTION
    Some of Generali's Italian shareholders have expressed
concern about French nationals holding the two top positions at
Italy's biggest insurer, which has a large Italian state bond
portfolio, sources said last week.  urn:newsml:reuters.com:*:nL8N2JP5I3
    Speculation over change at Generali grew when Italian
eyewear billionaire Leonardo Del Vecchio became the biggest
single shareholder in its largest investor Mediobanca  MDBI.MI .
    Del Vecchio, who also owns shares in Generali, has ruled out
a merger with Axa or Zurich, which have been rumoured suitors.
 urn:newsml:reuters.com:*:nL8N2DG2IO
    Sources have said he prefers organic growth or mergers which
do not raise questions over the firm's Italian identity. 
    The group of Italian investors also includes businessman
Francesco Gaetano Caltagirone.
    "I think Donnet needs to prove to Caltagirone and Del
Vecchio that there is no 'inner circle', especially since this
is the last year of his current term," a source told Reuters. 
    Donnet has been at the helm since 2016, and his mandate as
CEO comes up for renewal in early 2022. 
    Generali, currently worth 22.7 billion euros, said its new
structure would accelerate plans to grow its asset management
business which will boost profits and absorb less capital.

 (Reporting by Claudia Cristoferi, Gianluca Semeraro and Stephen
Jewkes; Editing by Jan Harvey and Chizu Nomiyama)
 ((gianluca.semeraro@tr.com; +39 06 80 307 741;))