Generali targets smaller insurance companies to grow in Europe
Italian insurance major Generali is contemplating to acquire small and medium-sized insurance companies in Europe in order to further bolster its presence in the region, Reuters reported.
"We have capital and cash for acquisitions," Reuters quoted Generali CEO Philippe Donnet as saying on May 07, the day Generali held its annual general meeting, "we will look at opportunities in a very selective way to increase earnings per share and create value for shareholders."
Last November, the insurer said that it has a war-chest of around €4bn to acquire asset management and other higher margin businesses.
We have capital and cash for acquisitions"
The central and eastern Europe small and medium size insurance firms, which are unable to cope with complex regulation, are potential targets, Donnet added.
The CEO said earnings from the asset management business must grow as well.
Additionally, the insurer has raised €1.9bn from the sale of its German life insurance unit Generali Leben.
"We completed our disposals plan. Nothing else is on the table. If opportunities creating value for our shareholders arise, we will consider them", Donnet was quoted as saying by the news agency.
Last month, Generali agreed to acquire the life, non-life and composite insurance portfolios of three entities of Ergo International in Hungary and Slovakia.
In March, it completed sale of Generali Worldwide Insurance Company and Generali Link to Life Company Consolidation Group (LCCG).
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