Generali Group announces new growth strategy

The Board of Directors of Assicurazioni Generali has approved the new three-year strategy, entitled “Lifelong Partnership 27: on the path to excellence”, which was presented in Venice on 30 January.

At the event, Philippe Donnet, CEO of the Generali Group, highlighted:

“Generali has successfully exceeded the financial targets of the previous three-year strategy in a difficult global macroeconomic environment. We are now accelerating our pursuit of excellence to deliver higher profit growth and cash generation, aiming to increase shareholder returns, with double-digit dividend growth resulting in a cumulative dividend of over €7 billion and a share buyback commitment of at least €1.5 billion over the life of the plan, including the €0.5 billion buyback announced today starting in 2025.”

Generali’s new strategy focuses on driving excellence in customer relationships, core insurance and asset management capabilities, and operating model.

“Lifelong Partnership 27: On the Path to Excellence” will create significant and sustainable value, targeting a compound annual growth rate (CAGR) of earnings per share (EPS) of between 8% and 10%. The plan also aims to continuously increase cash generation, reaching a net holding cash flow of over €11 billion (expected 2022-24: approx. €9.5 billion), supported by a subsidiary contribution of approx. €14 billion (expected 2022-24: approx. €11.5 billion); in addition, the group aims for a normalised capital generation of over €14 billion over the plan period (expected over €13 billion in the 2022-24 cycle). This reflects the consistent application of the group’s capital management framework and a clear commitment to increasing shareholder returns.

As a result, Generali commits to a compound annual growth rate (CAGR) of more than 10% in dividends per share (DPS) and targets a dividend of more than €7 billion over the plan period, approximately 30% higher than the €5.5 billion allocated during the previous cycle.

More than €3 billion has been allocated for share buybacks and other capital expenditure (e.g. M&A). The Group has committed to a minimum annual share buyback of €0.5 billion, the amount of which will be reviewed at the beginning of each year. The €0.5 billion share buyback for 2025 has already been approved, but is still subject to AGM and regulatory approval.