By Mauro Orru 
 

--Assicurazioni Generali confirms targets as part of its 2021 strategy

--The company targets an extra EUR100 million in recurrent savings by 2021

--Financial debt reduction stands at EUR1.9 billion

 

Assicurazioni Generali SpA said Wednesday that it is targeting an additional 100 million euros ($118.6 million) in recurrent savings by 2021 as it confirmed financial targets as part of its 2021 strategy.

The Italian insurance giant, which confirmed EUR1 billion in investments, said the extra savings would come on top of its original reduction target of EUR200 million, which has been secured ahead of time.

Debt reduction has come to EUR1.9 billion, at the higher end of the target range and one year ahead, while the net holding cash flow target of over EUR7 billion is also ahead.

Generali's solvency II ratio--a key measure of financial strength for insurance companies--was 203% as of Sept. 30.

"Our Generali 2021 strategy remains effective and even more valid in the current market context," Chief Executive Philippe Donnet said.

The company is still targeting a compound annual growth rate in earnings per share between 6% and 8% from 2018 to 2021 thanks to higher contributions from expense reductions and debt optimization, which helped Generali weather the coronavirus-related slowdown and the ultra-low interest rate environment.

Cumulative dividends should range between EUR4.5 billion and EUR5 billion from 2019 to 2021, with a pay-out range for the period between 55% and 65%.

Return on equity for 2019 and 2021 should be more than 11.5%, although the coronavirus pandemic and one-offs are set to harm the 2020 result.

Generali said its top-line has shown resilience, citing its diversified business model combined with risk selection that minimized the impact of the pandemic.

The company also backed its 2021 targets for asset management, projecting a net result for the segment around EUR350 million in 2020 and EUR400 million in 2021.

 

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

 

(END) Dow Jones Newswires

November 18, 2020 04:18 ET (09:18 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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