Generali Targets Extra EUR100 Million in Recurrent Savings by 2021 -- Update
18 Novembre 2020 - 10:33AM
Dow Jones News
By Mauro Orru
--Assicurazioni Generali confirms targets as part of its 2021
strategy
--The company targets an extra EUR100 million in recurrent
savings by 2021
--Financial debt reduction stands at EUR1.9 billion
Assicurazioni Generali SpA said Wednesday that it is targeting
an additional 100 million euros ($118.6 million) in recurrent
savings by 2021 as it confirmed financial targets as part of its
2021 strategy.
The Italian insurance giant, which confirmed EUR1 billion in
investments, said the extra savings would come on top of its
original reduction target of EUR200 million, which has been secured
ahead of time.
Debt reduction has come to EUR1.9 billion, at the higher end of
the target range and one year ahead, while the net holding cash
flow target of over EUR7 billion is also ahead.
Generali's solvency II ratio--a key measure of financial
strength for insurance companies--was 203% as of Sept. 30.
"Our Generali 2021 strategy remains effective and even more
valid in the current market context," Chief Executive Philippe
Donnet said.
The company is still targeting a compound annual growth rate in
earnings per share between 6% and 8% from 2018 to 2021 thanks to
higher contributions from expense reductions and debt optimization,
which helped Generali weather the coronavirus-related slowdown and
the ultra-low interest rate environment.
Cumulative dividends should range between EUR4.5 billion and
EUR5 billion from 2019 to 2021, with a pay-out range for the period
between 55% and 65%.
Return on equity for 2019 and 2021 should be more than 11.5%,
although the coronavirus pandemic and one-offs are set to harm the
2020 result.
Generali said its top-line has shown resilience, citing its
diversified business model combined with risk selection that
minimized the impact of the pandemic.
The company also backed its 2021 targets for asset management,
projecting a net result for the segment around EUR350 million in
2020 and EUR400 million in 2021.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
November 18, 2020 04:18 ET (09:18 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Grafico Azioni Generali (BIT:G)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Generali (BIT:G)
Storico
Da Mar 2023 a Mar 2024