Generali targets 94.5% P&C CR under new strategic plan to 2027

By Rebecca Delaney

Jan 30 - (The Insurer) - Italian insurer Generali has unveiled new underwriting and operating targets under its latest strategic plan, which aims to achieve an undiscounted P&C combined ratio of 94.5 percent by 2027.

The new "Lifetime Partner 2027" strategy for the next three years has been approved by Generali's board of directors and will be presented to investors later today.

It targets a compound annual growth rate (CAGR) of more than 6 percent in P&C gross written premiums over the period.

Generali is also aiming for an 8-9 percent CAGR in its P&C operating result, and a 4-5 percent CAGR in its life insurance business.

"In P&C, Generali will prioritise preferred profit pools, including a focus on its offering for families, professionals and SMEs, addressing key protection gaps with a distinctive product offering, while strengthening customer relationships and service levels," said Generali.

"The group will also enhance its travel and mobility business, through Europ Assistance, given its strong capabilities and established footprint."

Generali is also targeting a reduction in its P&C general expenses/gross insurance revenues ratio of around 1.5 percentage points by 2027.

For the group as a whole, Generali is aiming to achieve a CAGR in earnings per share of between 8 and 10 percent over the three-year period.

The group is also targeting more than €11bn in cumulative net holding cash flow, up from ~€9.5bn between 2022 and 2024E.

More than €3bn has been allocated to share buybacks and other capital deployment such as M&A. Generali said it will assess M&A opportunities with "strict discipline", including benchmarking any potential transaction against share buybacks.

The group's capital management framework will have an increased focus on shareholder returns, targeting more than €7bn in cumulative dividends for 2025-27, an increase of around 30 percent compared to the previous strategic plan.

Generali has committed to at least €1.5bn in share repurchases over the period, with a €500mn buyback to be launched in 2025.

“Generali has successfully over-delivered against the financial targets of its ‘Lifetime Partner 24: Driving Growth’ plan in a tough global macro environment," commented Philippe Donnet, Generali CEO.

"We will now accelerate our pursuit of excellence to drive higher earnings growth and cash generation, targeting increased shareholder returns with double-digit growth in the dividend per share leading to over €7bn in cumulative dividends plus a commitment to at least €1.5bn in share buybacks over the plan horizon, including the €0.5bn buyback that we are launching in 2025 as presented today."