Strategy

During the Investor Day that took place on 15 December 2021, Generali launched the Group’s new three-year strategy Lifetime Partner 24: Driving Growth.
 
The bedrock of the new plan is our ongoing commitment to be a Lifetime Partner to our 70 million customers in over 50 countries. Investments in personalised products, digitally-enabled advice and a best-in-class customer experience will see Generali and its global network of 164,000 agents get even closer to customers.
 

“Generali’s longstanding Lifetime Partner commitment puts our customers at the heart of everything we do. Under our new plan, we will take this commitment to the next level and confirm Generali as a customer-focused and data-driven innovator.
The ambitious targets and initiatives we have announced today are possible thanks to the successful delivery of our previous strategic plans. Today, Generali has a strong financial position, diversified earnings, consistent profitable growth and a track record of generating best-in-class shareholder returns. We look forward to building on these achievements over the next three years. Our leadership in insurance, our established in-house asset management capabilities, our digitally-enabled network of 165,000 agents and our increased commitment to making a positive social and environmental contribution mean that Generali is ideally placed to achieve sustainable growth for the benefit of all stakeholders.”

Philippe Donnet, Generali Group CEO
 

The strategic plan Lifetime Partner 24: Driving Growth sets out a clear vision for Generali in 2024 and is built on three strategic pillars: drive sustainable growth, enhance earnings profile, and lead innovation. The plan will also deliver strong earnings per share growth, increased cash generation and a higher dividend.
 
We will go further in our sustainability commitments during this strategic cycle, with a continued focus on making a positive social, environmental and stakeholder impact. In addition, we will continue to invest in our people to ensure they are engaged with the successful delivery of the new plan while fostering a sustainable work environment.

Ambitious 2024 targets based on sustainable growth:

Strong earnings growth: 6% - 8% EPS CAGR range (2021-24)
Robust EPS growth driven by:

• Higher growth in P&C and ongoing transformation of Life portfolio, supported by continuous expense optimization
• Sustained revenue growth in Asset Management
• Increased contribution from high quality technical and fee earnings
• Effective capital redeployment

Increased cumulative net Holding cash flow: > € 8.5 billion (2022-24)
To be achieved through:

• Growing recurring cash remittances underpinned by solid capital generation
• Continued implementation of disciplined Group Capital Management Framework, enabled by resilient Solvency position

Higher dividend: cumulative € 5.2 - 5.6 billion cash dividends (2022-24) vs € 4.5 billion (2019-21)
To be achieved by:

• Boosting P&C revenues and maintain best-in-class technical margins
• Growing capital light business, technical profits and ESG product range
• Underpinning growth with effective cost management

Key highlights of the new strategic plan

Drive sustainable growth

• Improve market share in segments with significant growth potential – SMEs, Senior Care in Europe and Travel in the US
• Seize growth opportunities offered by health protection gap thanks to our leadership in core markets
• Drive Unit Linked business volumes and further internalize margins
• Boost protection as a de-risking tool for investment solutions
• Expand ESG solutions proposition
• Maintain cost discipline in mature insurance markets
• Focus investments in Asia and fee businesses

Enhance earnings profile

• Undertake comprehensive in-force optimization to reduce capital intensity and improve operating result
• Enhance strategic asset allocation, integrate ESG and leverage real asset platform to improve returns
• Reinforce leadership in Europe and strengthen presence in selected Asian markets
• Invest in selected Asset Management capabilities and build scale to accelerate 3rd party growth
• Expand real asset capabilities building an in-house private debt proposition to improve risk-adjusted returns and fee margin
• Upscale distribution platform to drive organic growth in 3rdparty revenues

Lead innovation

• Increase customer value by scaling digitally-enabled advisory model
• Establish seamless omni-channel approach across distribution channels
• Gain share of European digital profit pool by scaling direct operations
• Leverage new data capabilities to improve technical leadership and offer value-added services through digital ecosystems
• Develop powerful and sustainable innovation engine to support future growth
• Reduce costs through digitization, core process automation and shared platforms
• Optimize further claims management using Artificial Intelligence