All Cattolica plans (not only with Assicurazioni Generali)
What will happen to Cattolica Assicurazioni. The point of Emanuela Rossi
A 2020 went well, at least according to preliminary data, and a 2021-2023 plan in continuity with the industrial strategy of the group: Cattolica Assicurazioni starts the year with optimism waiting for two important spring changes, the transformation into a spa and the farewell by Paolo Bedoni, the president dominus who seems to be behind the many turmoil of recent years.
Meanwhile in Verona there are also other matches to keep an eye on: the results of the IVASS inspection, following the torpedoing of the managing director Alberto Minali on October 31, 2019, which led to the request for a change in governance and the investigations Consob to clarify the transaction that allowed Generali to enter Cattolica's capital (with 24.4%) at a cost of € 300 million.
THE PRELIMINARY DATA 2020
The board of directors, as we said, disclosed the preliminary data relating to the previous year, which closed with direct premium income for Non-Life premiums for approximately 2.1 billion and Life premiums for approximately 3.7 billion. The operating result is between 360 and 380 million, in line with the forecast communicated last year which pointed to a figure between 350 million and 375 million.
Numbers that please the CEO, former general manager of Cattolica, Carlo Ferraresi: "We are particularly satisfied with the preliminary figures for 2020, which demonstrate our solidity, strength and the ability of the Group to respond, also thanks to its partners commercial and the ability to renew the agency network, in a way that is ready for the difficult pandemic crisis. Covid has changed numerous balances and I am convinced that our Plan will allow us to effectively address the new needs that will emerge in the insurance sector ".
THE 2021-2023 PLAN
During the meeting, the board also approved the 2021-2023 rolling plan which presents – according to what was communicated by the Veronese group – a strategy based on three principles: “Consolidation” thanks to the completion of the ongoing initiatives relating to the 2018-2020 plan; “Focus” on some strategic initiatives, acceleration of the efficiency plan and relaunch of the profitability of the Life business; “Sustainability” through initiatives on the Cattolica estates, in order to increase profitability, and through the strengthening of the ESG strategy, for a sustainable transformation of the business.
There are four priorities on the core business on which the strategy of the 2021-2023 plan focuses, namely the monitoring of Non-Life profitability and growth on Auto and Health services, with strengthening the value of the agency network; increasing operational efficiency through cost optimization and process efficiency / simplification; the recovery of sustainability in Life through the review of the offer and the optimization of the portfolio in force; the reduction of the volatility of the Solvency II Ratio, also through portfolio diversification.
It is a plan that "aims to work in continuity with our industrial strategy and allows us, thanks to the strengthening of our business lines and our commercial dynamism, to respond adequately to market changes".
THE PROBABLE EXIT FROM LOMBARDA VITA AND THE EFFECTS ON THE 2021 OPERATING RESULT
Another novelty that emerged from the board of directors is the hypothesis of leaving the Lombarda Vita company, a joint venture with Ubi Banca, from 1 January 2021. Verona would receive a consideration of between approximately 290 and 300 million depending on the IAS / IFRS result 2020 by Lombarda Vita. Following the completion of the transaction, Cattolica Assicurazioni would be entitled to an IAS / IFRS capital gain in the 2021 consolidated financial statements of 100-110 million, while the capital gain on the statutory financial statements would be around 50-60 million. For the same reason, operating income is expected to fall between 265 and 290 million in 2021, with total premium income of approximately 5.2 billion, of which Non-Life 2.1 billion and Life 3.1 billion. These are forecasts, specified by Verona, based on the assumption of continuity of the remaining consolidation perimeter and which also include the first effects of the industrial partnership with Generali, signed on 24 June last.
WHAT DONNET THINK (GENERAL) OF ENTRANCE IN CATHOLIC
Staying in Trieste, one cannot fail to mention the words delivered to La Repubblica by Philippe Donnet, since March 2016 at the helm of Generali – "I played rugby, I only believe in the strength of the team" -, which provides: "Already in 2021 the agreement (with Cattolica, ed) will give us great satisfaction; the sale of asset management products is underway, while in March we will sell our health and Internet of Things services to 3.5 million Cattolica customers ”.
On the potential capital loss of about 90 million out of the 300 million invested to enter Cattolica's capital, the French manager notes that “the loss is only theoretical and temporary, while we have a long-term strategic vision”. And for the future in the city of lovers, Donnet announces: “We will see the conditions under which the increase will be launched and we will probably participate. But only for our share ”.
THE NEXT APPOINTMENTS OF CATTOLICA
Meanwhile, a new meeting of the board of directors is scheduled for 17 March to approve the draft financial statements and the consolidated financial statements at 31 December 2020 which will then pass the scrutiny of the shareholders' meeting convened for 13 and 14 May, in first and second call. On that occasion the new board will be elected and, after 15 years, Bedoni will leave the presidency of Cattolica, as already announced. It should be noted that the transformation of Cattolica Assicurazioni from a cooperative into a joint-stock company will be effective from 1 April.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/cattolica-piani-assicurazioni-generali/ on Sun, 31 Jan 2021 16:00:55 +0000.