General, Philippe Donnet confirms the target of Greek – Techcrunch.it

Andrea Deugeni
@andreadeugeni

LONDON - The point of departure is what the market was waiting. Promoted by the members at the beginning of 2016 in order to replace Mario Greco, Philippe Donnet, the former number one General of Italy, had received the mandate to continue in the wake of the industrial strategies designed a year and a half ago from the current Ceo of Zurich. And so he did, by confirming the target 2018 and breakthrough digital of the Lion, but by giving a further turn of the screw cost by operations efficientemento of car insurance and putting sale , such as Trieste had done in 2013 with the exit from the mexican market, the business in Countries , which the group considers as a non-profitable (from 13 to 15 areas). A weight loss cure impact of approximately 1% on the operating result group and the necessitated by the difficult and uncertain due to the lack of visibility on the horizon of the expansive monetary policy of the Ecb) the context of the market and he did bring in his experience "japanese" when Axa was sent to revive the fortunes of the subsidiary in japan that moved into the contexts of business similar. “When in may 2015 the Greek has drawn the previous industrial plan – specified Donnet, showcasing the updated - markets have worsened“. And the numbers are ambitious, they had to reconcile.

CLICK HERE TO READ the business PLAN of THE INTEGRAL OF the GENERAL curiosity/ Communicated to the financial community in General over the next three years will be released from 13-15 Countries (more than 60), on the market is the party of the whole Country. “We are working with Frederic de Courtois (his former colleague at Axa, the group Ceo has brought in Italian company)”, has specified Donnet, keeping her mouth rigorously stitched on the names of what he has dubbed the “the list of Frederic“.

Probably, in view of the premises of eve, the market expected perhaps a turn of the screw increased costs (with a plan redundancies to 8,000 units denied by the Ceo) with the sale of a package of shares of Banca Generali, investors have triggered the sales on the title of General, mid-session, leaves on the ground more than 4% 11,18 euros per share.

The numbers. Donnet has reaffirmed the € 7 billion of free cash flow provided by the previous industrial plan, the total dividends of more than 5 billion and an average return on capital (Roe) top 13%. In addition, it aims to get a billion euros in cash (after the 4 obtained from the Greek in the first industrial plan) from theexit from the markets is not interesting as recently done in Guatemala and Lichtenstein 200 million from further savings in the Countries core. The company has stated that it intends to maintain a geographical presence, global and diverse, focusing, however, on the key markets where already today it is technically strong, efficient and profitable, or in those Countries that have prospects for significant growth in the medium-to long-term period. “One of these is the italy, which will be str engthened,” said Donnet.

“our objective is leadership, in the Countries where we operate, measured on the size but on the profittabilita,’” he continued. The target is increase profitability of 15%. General in the mature markets will start a process of restructuring, integration and simplification that will allow a net reduction in cost of 200 million euros in the period 2016-2019, while in the growth markets will be a disciplined growth of business. In particular, it explains the company, in a group of 6-9 Countries , a presence will be consolidated and strengthened (the plan does not speak M&A, but Donnet has not excluded in the case of opportunities) and in a group 16-18 is expected to grow discliplinata. The billion of divestitures, has ensured the Ceo will be fully invested is about 5% of the total of the gross premiums and less than 5% of the Roe aggregate.

Which are these Countries where the General will be released? If Frederic de Courtois, Ceo, Global Business Lines&International, explained that it is a “mix of mature markets and emerging“, Donnet, a question in this sense of Techcrunch.en, has stated that “as for Guatemala, and Lichtenstein, the subsidiaries that will be decommissioned will be communicated to the market to deal concluded“.

Donnet, denying the latest rumors in this regard, said that “we never announced the redundancies to 8 000. Does not exist”. " There are redundancies, there are no plans for the restructuring of the staff and, moreover, Italy has already done its part as in the last few years he has already completed his path of efficiency. We are trying to do the same things in other Countries,” said the top manager.

Donnet was also on the theme of the bond Mps “When you will be informed of the terms of any conversion, voluntary watch them and together with the Cda we will make our assessments and will make a decision. Surely we will do so with a very positive attitude, because we want to participate in a solution for Mps”. As to the exposure of the company to the bank of siena, Donnet has highlighted that “we have never specified the individual exposures to individual banks, and therefore does not communicate, not even with regard to Siena.”

From the operational point of view, the General intends to “accelerate to excellence,” said the company in the note, with the “new goals of efficiency and profitability to strengthen your competitive advantage, thanks to a distribution network best-in-class, strong technical skills and cost base that is contained”. The company then estimated to create a program that defines fit-to-lead to increase 15% productivity.

Damage provides a further improvement of the over-performance of the combined ratio compared to peers and in the Life intends to reach a reduction of the average value of the warranty up to 1.5%, with a rebalancing of the portfolio to 2018. Are the planned actions on our customers and distributors, to get to increase customer retention by 2 percentage points by 2018. You want to reinforce your brand, increasing by 3% preference in mature markets to 2018 and a further acceleration on digital projects to improve the operational effectiveness and solutions to the customers and the distribution network.