Here’s how Caltagirone and Del Vecchio will wallow in the dividends of Generali
The major shareholders of Assicurazioni Generali such as Del Vecchio and Caltagirone grumble towards the top management of the Trieste group, yet the Lion pays them back with hefty dividends. Here are Generali's 2020 accounts and how many dividends it will distribute to shareholders.
A dividend yield of 8.84% (referring to yesterday's close on the stock exchange) for a total maximum coupon amount of 2.315 billion.
This is the super dividend (from 1.47 euros per share) proposed by the board of directors of Generali together with the 2020 accounts of the insurance group: a remuneration – underlines Radiocor – which sees both an increase in the annual component of the dividend (that on the 2020 rises to € 1.01) to be paid in May, and the recovery of the second tranche of 2019, € 0.46, to be paid in October in the absence of new impediments from the Supervisory Authority.
HOW GENERALI'S SHAREHOLDERS RUN AMONG DIVIDENDS
Even the large shareholders of Generali, after the coupon in the middle of last year, are therefore preparing – if all goes as planned – for a hefty collection.
DIVIDENDS OF GENERALI FOR MEDIOBANCA
For Mediobanca, which has a 12.97% stake in Leone, we are talking about almost 300 million, to be precise 298.6 million.
WHICH WILL COLLECT DEL VECCHIO AND CALTAGIRONE AS DIVIDENDS
For the builder and publisher Francesco Gaetano Caltagirone, who in recent weeks has further rounded up his stake in Assicurazioni Generali to 5.65%, of almost 131 million; for Del Vecchio of 112 million and for the Benettons of 92 million; all partners who have muttered quite a bit about the top management of the company and are contemplating overturning scenarios in Trieste.
HOW ASSICURAZIONI GENERALI CLOSED 2020
Generali closed 2020 with a net profit down on the previous year to € 1.744 billion (-34.7%, slightly below Intesa Sanpaolo's expectations for € 1.782 billion), which was affected by one-off items and write-downs on investments, mainly in the first half.
THE NUMBERS ON THE GENERALI DIVIDEND
The Trieste insurance group has in fact proposed a dividend per share of 1.47 euros, in two tranches respectively equal to 1.01 (0.96 euros in 2020) and 0.46 euros per share (this is the unpaid part of the last year). At current prices, the dividend yield is 8.84%.
WHEN THE DIVIDEND WILL BE DISTRIBUTED
The 1.01 euro dividend will be distributed in May and represents the ordinary payout on the 2020 profit, while the 0.46 euro coupon will be payable starting from October and subject to verification by the Board of Directors of the absence of provisions or recommendations impeding the European supervision.
NET PROFIT OF GENERALI
Excluding the charge of the International Extraordinary Fund for Covid-19 and the liability management operation, the normalized net profit is 2.076 billion (-12.7%). Meanwhile, today the stock opens well in Piazza Affari, with a jump of 2.7% to 17.07 euros per share.
THE GROUP'S RESULT
The group's operating result, on the other hand, was confirmed as the best ever, reaching € 5.208 billion (+ 0.3% from 5.192 billion in 2019).
ESTIMATES
The Trieste-based company estimates that the impact of Covid-19 on the operating result was 123 million.
THE POSITION OF THE COMPANY ACCORDING TO GENERALI
Then confirmed, as the group explains, "the excellent capital position", with the Solvency Ratio at 224% (228% at the end of February, over the consensus for 218%), "which benefits from a record generation of capital equal to to 4 billion euros ".
THE RATIO
The combined ratio (representing the technical quality index of non-life management) at 89.1% is 90.3% better than Intesa's expectations.
THE NUMBERS OF GENERALI
Generali confirmed the objective of 2018-2021 compound annual growth in earnings per share (eps) between 6% and 8%, of an expected Roe in 2021 greater than 11.5% and cumulative dividends for 2019 -2021 between 4.5 and 5 billion euros. Despite a scenario that "remains highly uncertain, the more favorable prospects for the diffusion and efficacy of vaccines have helped to further strengthen investors' prospects on the global economy in 2021".
THE PERSPECTIVES
In 2021 – Mf summarized – the insurance sector as a whole should benefit from the economic recovery: the demand for Life insurance products, albeit recovering, will remain weak, as expected, because households will continue to be cautious both in terms of investment and consumption. Non-Life premiums are expected to return to growth, at a higher rate than those prior to the pandemic.
HOW GENERALI WILL GROW
In the course of 2021, the group intends to seek further growth opportunities in the asset management sector, with the expansion of the multi-boutique platform to increase the product catalog. By leveraging these initiatives and after the results achieved at the end of 2020, the group confirms the growth objectives set for 2021.
DONNET'S COMMENT
Today the CEO of Generali, Philippe Donnet, explained that these are “excellent results, obtained in an unprecedented context due to the crisis generated by the pandemic. These results confirm the greater resilience of Generali compared to the other players in the sector, both from a technical point of view and from that of capital strength ".
RESULTS AND DIVIDEND
The manager recalled that for the second consecutive year the company recorded the best operating result in history and, “also thanks to the further growing dividend, we continue to create value for all our shareholders. We have now entered the last year of the strategic plan and we are well positioned to achieve all the objectives of Generali 2021 ”.
THE NEW GENERALI STRUCTURE ACCORDING TO DONNET
The company has defined and implemented a new organizational structure to ensure “not only the success of this plan but also to prepare for the next strategic cycle. The group has also accelerated the transformation of the business to ensure a distribution model that increasingly combines physical and digital dimensions ”. Meanwhile, the board of directors has called the shareholders' meeting, in both ordinary and extraordinary sessions, for 26, 28 and 29 April, in Trieste.
CATHOLIC DOSSIER FOR GENERALS
The CEO Donnet then specified that he had made with Cattolica “an investment that has led us to be the first shareholder at 24.4% in exchange for an industrial agreement that is giving good results. It is an investment that is giving us satisfaction ".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/delvecchio-caltagirone-dividendi-general-assicurazioni/ on Thu, 11 Mar 2021 11:23:41 +0000.