Generali : Upcoming plan: confirmation of favourable trends and tie-up in AM
Generali’s new three-year strategic plan, due to be presented on 30 January will, we think, confirm, unsurprisingly, its EPS growth potential (we forecast an average +8.6% for adjusted EPS) and provide an update on the deal to combine its AM businesses with Natixis IM. Investor focus is now set to be on its strategy for capital returns to shareholders. But upside on the stock looks limited at this stage given its strong gains in 2024. We therefore maintain our Neutral rating vs the sector.Generali and BPCE to bring together AM businesses
Generali (Europe’s sixth-largest asset manager) on Tuesday morning announced it had signed a memorandum of understanding to bring together its asset management operations with those of BPCE (Natixis IM). The deal is set to be finalised early 2026 and create Europe’s second-largest asset manager with € 1.9tn in AuM. Both groups have a similar multi-boutique approach. Ownership of the new entity is to be split 50/50 between the two groups, with shared governance. Clearly the two main platforms (Generali Investments and Ostrum) will be merged, but the other boutiques active in the same asset classes/geographic zones are in most cases likely to remain independent, which will limit synergy potential. The deal is set to be virtually neutral for 2026 and 2027 EPS ahead of restructuring costs, with limited accretion in the medium term (2%/3%) and is not expected to impact on its solvency margin.
Assicurazioni Generali is the parent company for The Generali Group (the Group), an insurance and financial services provider. The commercial offer is composed of savings and pure risks policies, which constitute the majority of the portfolio, which includes protection and pension funds. In the non-life sector the Group is focused primarily on the retail market. In addition, through the Europ Assistance Group, Co. is engaged in services in motor, travel, health, home and family. The Group has also expanded its business from insurance to a range of asset management, property and financial services.
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