Domenica, 21 Ottobre 2018

Generali insurance says it will cut costs, boost cash flow


London, January 14 - Italian insurer Assicurazioni
Generali SpA, the third largest insurer in Europe, said Monday
that it intends to cut its costs and increase cash flow to
restore profitability.
That came as chief executive Mario Greco announced a
reorganization aimed at boosting the sluggish financial
performance of the Trieste-based company.
Cash flow is expected to rise to as much as two billion
euros in the next three years as Generali focuses on businesses
in emerging markets as well as its core insurance unit to
improve profitability.
It also plans to increase its capital reserves by about
four billion euros by 2015 through the sale of peripheral
"We expect the total benefit to the business from the
disposal of non-core assets, including those already mentioned,
as well as possible others, will bring in around four billion
euros of regulatory capital by end-2015," Greco told reporters
on Monday in London where he was scheduled to make an investor
Generali has already said that BSI, its Swiss private
banking unit, and its life reinsurance business in the United
States are up for sale - but only under the right conditions,
Greco said Monday.
The insurer wants to reduce costs by 600 million euros in
the coming three years and expects a return on equity of 13%.
Such targets are "serious, sensible," but not overly
conservative, said Greco.
"We are working to create a stronger company three years
from today," he added.
The news did not impress markets as Generali shares fell by
as much as 3.2% in trading on the Milan stock exchange.

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