Here are the accounts and turmoil of Cattolica Assicurazioni
How did the accounts of the first half for Cattolica Assicurazioni and what is happening in Verona between waiting for the arrival of Generali and the small riotous shareholders
Profit down in the first six months of the year for Cattolica Assicurazioni which, however, is growing on the balance sheet and returns to relative tranquility after the decline that had led the Supervisory Authority to request a capital increase of 500 million euros.
Recapitalization that paved the way for the entry of Generali – which with 300 million euros becomes the first shareholder of the Veronese group – thanks to the transformation from a cooperative to a joint-stock company approved by the shareholders' meeting and which received a green light from IVASS. An arrival, that of the Trieste-based company, which however did not please some small shareholders who have already taken legal action.
DATA OF THE FIRST HALF
In the first half of 2020, Cattolica Assicurazioni posted a profit of € 10 million, down by 83.1% compared to the same period of 2019. Writedowns of € 86 million weigh on the accounts. Adjusted net profit, which does not consider extraordinary factors, increased by 16% to 80 million. As noted by the same company in the comment note, in the first six months of the year there was a "strong growth" of the operating result, + 38.6% to 217 million, despite the "challenging context". The forecast of an operating result of 350-375 million euros for the entire year has been confirmed.
As regards premiums written, it totaled € 2.8 billion, down by 13.3%, with the non-life business recording -3.8% and the life business -18.2%. The combined ratio improved, which fell from 93.4% to 87.1%, “above all thanks to the sharp drop in frequency linked to lower vehicular traffic” during the lockdown .
At the balance sheet level, the Veronese group seems to have recovered its breath after the solvency index between March and May had approached the limit of 100% from 175% at the end of 2019. Precisely this situation had prompted Ivass to ask for a recapitalization intervention from 500 million euros. In August, Cattolica Assicurazioni points out, the Solvency II index is estimated at 154%, “in further recovery also thanks to the drop in the spread”. As of June 30, it had already risen to 141%. In particular, the two life companies, subject to capitalization interventions, saw their solvency index reach 189% in the case of Vera Vita and 320% in the case of BCC Vita.
THE WORDS OF THE CEO FERRARESI
The managing director Carlo Ferraresi seems satisfied, who has taken the place of Alberto Minali, whose powers had been removed during the stormy board of 31 October last. “The data presented today confirm the Group's ability to cope with events of exceptional magnitude, such as those that have occurred since the beginning of the year at a global level,” said Ferraresi. "In a completely new and challenging context – he added -, Cattolica has on the one hand confirmed the guidance for the year, achieving solid and growing operating results compared to 2019, and on the other hand it has defined a historic agreement with Generali" . Now "strengthened by the support of the Shareholders, who expressed themselves in favor of the share capital increase and the transformation of the Company into SpA in the coming months, we will work in the coming months to strengthen the capital and the contextual partnership with Generali, continuing our commitment value for all stakeholders ".
OK IVASS A AMENDMENTS TO THE STATUTE (FOR GENERAL ENTRANCE)
Only a few days ago, Ivass gave the green light to the statutory changes approved by the assembly of the Veronese group at the end of July which envisage, among other things, the important transformation from a cooperative into a joint stock company. This is the change necessary for the entry of Generali in the capital of the company: in the coming months Cattolica will give rise to a capital increase of 500 million of which 300 will be reserved for Generali which will thus become the first shareholder with 24.5% of the shares. “Following the registration of the shareholders' meeting resolution for transformation into a joint stock company – reads a note issued by the group -, Cattolica will publish the procedures for exercising the right of withdrawal related to the transformation. Taking into account the above, the transaction with Generali will therefore be able to enter its executive phase ".
GRAINS WITH SMALL SHAREHOLDERS
However, as mentioned above, we must not forget the upheavals within the shareholding structure . In August the Court of Venice rejected the appeal of some shareholders opposed to the entry of the Leone di Trieste but only a few weeks ago the Api syndicate pact would have presented a complaint to Consob asking to evaluate the obligation to request a takeover bid by Generali: the participation with 300 million euros in the capital increase requested of Cattolica by Ivass – they argue – will result in the transfer to the Friulian city of almost one third of the value of the reserved capital increase within two years.
According to reports from milanofinanza.it, among the elements cited in the complaint is the fact that the assets, currently managed by the asset management structure of the Veronese group, would be transferred to the asset management company of Generali: they would fly to Trieste – again for the dissenting members – about 9-18 million a year. News would also come for the business related to the health sector which would be coordinated by Welion, a subsidiary of the Lion, as well as for reinsurance and information technology, areas in which the two companies plan to develop synergies.
Also some riotous shareholders or 34 small shareholders – equal to 0.18% of the total, with a total ownership of 54,418 shares equal to 0.03% of the total, as Cattolica announced – had presented an appeal to the Court of Venice. Among them Michele Giangrande, candidate of the dissidents for the position of CEO (went to the general manager Carlo Ferraresi), Maurizio Zumerle, president of the small shareholders of Cattolica, Enzo Zambelli and Monsignor Giorgio Benedetti, president of the Diocesan Institute for the Support of the Clergy of Verona, supported by local entrepreneurs and politicians.
The problem, they noted, is that adequate information to the shareholders would not have been adequate during the meeting and the late and poor communication made would have weighed on the vote. Furthermore, the right of option was limited without explaining the reasons. Basically – as stated in the appeal of the resolution – “extremely important information (ie the partnership project with Generali) was received only after the deadline for the vote in the meeting, set for 24 June”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/ecco-conti-e-subbugli-di-cattolica-assicurazioni/ on Fri, 11 Sep 2020 08:37:09 +0000.