Generali Elects New Chairman; Cites Growth in First Quarter

Assicurazioni Generali SpA's shareholders elected Cesare Geronzi as chairman of the group at the annual general meeting.

Geronzi, 65, replaces Antoine Bernheim, 75, as the group's chairman. Geronzi is chairman of Italian investment bank Mediobanca, which holds a 13.5% stake in Generali.

During the meeting, Generali also provided preliminary figures for the first quarter of 2010. Total premium income for the quarter rose 16.5% to 20.8 billion euros. In the Italian market, premiums rose 22.6% to 5.4 billion euros. The insurer said strong life insurance growth and good results in motor insurance contributed to the quarter's advances.

Consolidated first-quarter results are to be released on May 12.

Shareholders also approved Sergio Balbinot and Giovanni Perissinotto as managing directors. Perissinotto, who was also appointed group CEO, will be responsible for operational management of the group in Italy and abroad.

Balbinot will be responsible for insurance business outside Italy and reinsurance both in Italy and abroad.

Vincent Bollore, Francesco Gaetano Caltagirone and Albert Nicola Nagel were named as vice chairmen. A total of 19 members are on Generali's board of directors.

A cash dividend of 0.35 euro a share for 2009 was approved for distribution. Total dividend payout will total 544.9 million euros, with a cash payout ratio of 41.6%.

In 2009, Generali said a strong recovery in investment performance along with growth in its life insurance segment contributed to a 52.1% rise in 2009 net profit. The multiline insurer's net profit rose to 1.31 billion euros from 861 million euros in 2008 (BestWire, March 18, 2010).

Generali said its profitable underwriting and premium growth was boosted by better performance in financial markets, compared with 2008. Shareholders' equity in 2009 rose 47.2% to 16.7 billion euros. In addition to the boost in net profit, the group pointed to a 1.8 billion euro contribution attributed to "the recovery in financial markets," and 2.5 billion euros gained through its merger with Alleanza Toro.

Last July, shareholders approved the merger by incorporation of Alleanza Assicurazioni and Toro Assicurazioni, creating a new company, Alleanza Toro, that is wholly controlled by Generali. The combination tapped into Alleanza's experience in the property/casualty market and Toro's knowledge of the life market in Italy.

Assicurazioni Generali SpA currently has a Best's Financial Strength Rating of A+ (Superior).