Generali CEO Says Insurer Has Financial Strength for M&A Deals *Centurion Insurance AFS*

Italian insurance giant Assicurazioni Generali SpA has the financial means for acquisitions that fit its template for value creation, according to Chief Executive Officer Philippe Donnet.

“We are considering very strict discipline for M&A which allows value creation,” Donnet said in an interview with Bloomberg Television on Tuesday. The company will look at targets that have a strategic, financial and cultural fit, he said.

Donnet declined to comment on specific targets, following reporting by Bloomberg last week that the Trieste-based group was looking at potential acquisitions, with some valued at more than €10 billion ($10.9 billion).

Generali CEO’s Strategic Wishlist Includes €10 Billion Deals

Shares in Generali rose on Tuesday after fourth-quarter earnings beat estimates and the firm announced an increased dividend. Generali has the financial strength if deals arise, Donnet said at a press conference.

The Italian insurer has more than half a dozen firms on its wishlist, including large ones such as Aviva Plc and smaller rivals like Uniqa Insurance Group, people familiar with the matter said earlier. Italy’s biggest insurer has also studied the possible merits of a deal with NN Group NV, a Dutch insurer with a market value of about €11 billion.

Last year, the firm agreed to acquire a group of European businesses from US insurer Liberty Mutual Holding Co. for €2.3 billion and Cathay Life unit Conning Holdings Ltd.

The current takeover planning is focused on Generali’s core European markets and concerns mainly share-based deals, rather than cash. Other targets on the company’s radar include Aegon Ltd, Ageas SA, Baloise Holding AG, Ergo Group, Mapfre SA and Vienna Insurance Group AG, the people said.

Photograph: Generali CEO Philippe Donnet; Photo credit: Alessia Pierdomenico/Bloomberg

Copyright 2024 Bloomberg.

Topics
Mergers & Acquisitions
Carriers