Generali to invest €1bn in digital innovation

Italian insurer Generali wants to invest around €1 billion in internal strategic initiatives for innovation and digital transformation as part of its 2021 three-year strategic plan.

The investment will involve launching a pan-European mobility platform, developing a B2B2C ecosystems and digitalising agent-customer relationship to enable digital transformation of distribution.

In addition, Generali wants to further simplify the process and organization, scale up automation and artificial intelligence (AI) in core operations and increase share of end-to-end digital policies in order to transform and digitalise the operating model.

As part of Generali 2021, the group is committed to delivering growing earnings per share, with a target compound annual growth rate (CAGR) of 6 percent to 8 percent for the period 2018-21. There will be a number of contributors to this target including increased core profitability from Generali’s insurance and asset management businesses, greater efficiency with an additional expense reduction target of €200 million in mature markets by 2021, active management of interest expenses and redeployment of capital to support profitable growth initiatives.

As part of the plan, Generali wants to invest in growth markets and segments (CEE, health, benefits, assistance) and launch new ventures. The company wants to focus on high-potential insurance markets which are set to generate 15 percent-25 percent earnings CAGR in the 2018- 21 period. The plan also includes the aim to deliver profitable growth in Asia and Latin America, upgrade the small and medium-sized enterprise (SME) segment offering, grow employee benefits capabilities and develop value-added insurance service proposition.

“Today, Generali unveils an ambitious strategy – Generali 2021 – which will accelerate the Group’s growth and deliver superior returns to our shareholders, said Generali Group CEO Philippe Donnet. “Our primary ambition is to become a life-time partner to our customers, offering innovative and personalized solutions thanks to an unmatched distribution network.

“This clear and distinctive strategic vision leverages on our strengths to consolidate leadership in Europe on retail and SME customers, expand operations in high-potential markets and develop a global asset management platform. At the same time, Generali will continue to focus on generating and managing capital to fund growth opportunities in key markets and drive innovation and digital transformation wherever we operate. Thanks to this set of actions, Generali will achieve between 6 and 8 per cent Earnings per Share average annual growth over the plan horizon.

“We look forward to implementing this new strategic plan, knowing that our track record of delivery, driven by our talented colleagues and underpinned by our strong brand and long-term culture of sustainability, will ensure its success.”

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