Generali’s new strategic plan
The Generali Board of Directors recently approved an ambitious three-year strategic plan entitled “Lifetime Partner 27: Driving Excellence”. This plan, which will be presented to the financial community, aims to create significant and sustainable value for the Group, with the objective of achieving growth in earnings per share (EPS) of between 8% and 10% of CAGR (compound annual growth rate)
.
Growth and cash generation objectives
The strategic plan aims at sustained growth in cash generation, with expected net cash flows of more than 11 billion euros in the period 2022 to 2024, compared to the approximately 9.5 billion previously expected. This increase will be supported by approximately 14 billion in remittances from subsidiaries, with the intention of ensuring a normalized generation of capital of more than 14 billion over the entire period of the plan. Generali stresses that these results reflect a consistent implementation of the capital management framework and a strong commitment to increasing returns for shareholders
.
Dividends and share repurchases
Another crucial aspect of the plan is Generali’s commitment to achieve dividend per share (DPS) growth of more than 10% in terms of CAGR. The goal is to distribute more than 7 billion euros in dividends over the course of the plan, representing an increase of 30% compared to the 5.5 billion distributed in the previous “Lifetime Partner 2024: Driving Growth” plan. In addition, the Group has planned more than 3 billion euros for share repurchase plans and other methods of allocating capital, such as mergers and acquisitions (M&A
).
Capital Allocation Strategy
Generali announced that it will carry out an annual repurchase plan for treasury shares of at least 0.5 billion euros, with the amount to be evaluated at the beginning of each year. A plan to repurchase treasury shares of 0.5 billion has already been confirmed for 2025, subject to approval by the Shareholders’ Meeting and the competent authorities. The Group will evaluate M&A opportunities with a rigorous approach, comparing each potential transaction with its own share repurchase plans, thus ensuring an internal allocation of capital to support business growth and strategic initiatives, expected between 0.5 and
0.7 billion euros.