By Ed Frankl 
 

Assicurazioni Generali SpA on Wednesday issued a new strategy to 2024, including a higher dividend and annual earnings growth of 6% to 8%.

The Italian insurer said it would boost cumulative dividends across 2022-24 to between 5.2 billion and 5.6 billion euros ($5.86 billion-$6.31 billion), up from EUR4.5 billion in 2019-21.

The Trieste-based company is also targeting cumulative net holding cash flow of more than EUR8.5 billion in 2022-24.

The insurer also targeted 4% compound growth in nonmotor premiums to 2024 and EUR2.3 billion to EUR2.5 billion in new business value in 2024, compared with EUR1.9 billion in 2020.

Generali plans to pump EUR1.1 billion in investment in technology and digital transformation in 2022-24, up by 60% from its 2021 targets.

The new guidance comes amid a battle at the top of the company. The board approved the plans without the votes of two members--billionaires Leonardo Del Vecchio, chairman of Franco-Italian eyewear company EssilorLuxottica SA, who abstained through his holding company Delfin Sarl, and Francesco Gaetano Caltagirone, who voted against--according to a person with knowledge of the matter.

Earlier this month, the two men, alongside banking foundation Fondazione CRT, took their overall stake in Generali to more than 15%, the Italian insurer said Saturday.

The parties had previously agreed to use their combined shareholding in Generali to push for a "more profitable and effective management," challenging Generali's boss, Philippe Donnet, and its largest single shareholder, Mediobanca SpA.

"Generali has a strong financial position, diversified earnings, consistent profitable growth and a track record of generating best-in-class shareholder returns. We look forward to building on these achievements over the next three years," Mr. Donnet said.

Generali's 2021 targets were all met or exceeded, the company said.

 

Write to Ed Frankl at edward.frankl@dowjones.com

 

(END) Dow Jones Newswires

December 15, 2021 01:49 ET (06:49 GMT)

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