(update to add comments on foreign expansion, dividends)
MILAN (Thomson Financial) - Fondiaria-SAI SpA said preliminary estimates
show excess capital was about 1.025 billion euros at the end of 2007, up 10.2
percent compared to the end of 2006.
However, the excess capital fell to 841 million euros at the end of the
first quarter due to acquisition of Serbia's second largest insurance group DDOR
Novi Sad and the sale of Po Vita, it added.
In a meeting with analysts, CEO Fausto Marchionni said that the acquisition
of DDOR is a first step towards further expansion in emerging markets.
He added that the insurance company could issue a hybrid bond to finance its
international expansion.
He also reiterated that the group is not exposed to the subprime market.
The company will present a 2009 to 2011 business plan in September, after
having achieved its previous three-year plan a year early, Marchionni said.
He added that the group intends to continue its dividend policy.
Fondiaria-SAI plans to pay a dividend of 1.10 euro per ordinary share,
representing the distribution of 60.2 percent of its 2007 net profits, while its
Milano Assicurazioni SpA unit will pay 0.34 euro per share, or a 72.8 percent
payout.
philip.webster@thomson.com
pw/tc/pw/ejp
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