Generali repositions German business
Italian insurance group Generali has repositioned its business in Germany as it seeks to enhance its competitive position in the market by the end of 2018.
As part of the repositioning, the insurer has integrated Generali Deutschland, Generali Versicherung and Generali Leben into the new Generali Deutschland to ensure a simpler and closer-to-business governance.
It has also developed a new business model in life insurance to ensure long-term profitability. Generali will reduce the sale of pure traditional savings products and enhance its unit linked, hybrid savings and term life offerings.
According to Generali, the life business model will be “reshaped” in order to establish a “new normal” for the German life insurance business.
In addition, the insurer will operate a stronger focus on distribution strengths and building a modern and leaner operating platform.
Mario Greco, Generali chief executive officer (CEO), said: “Over the last two years, we have undertaken a reorganisation of the operations in core European markets, such as Italy and France, to simplify our businesses and instil more efficient processes and technical excellence.
“Now, after the minorities buy-out of Generali Deutschland completed in 2014, we are ready to launch a strategic repositioning to step up our ambitions and equip ourselves for the challenges ahead in Germany, our second largest market.
“Germany will play a key role in the years ahead in delivering best-in-class insurance services and further improving the attractiveness to our shareholders. I am very confident that the new management team together with the commitment of all our colleagues will successfully reshape and enhance our operations in the country.”
Giovanni Liverani, the CEO of Generali Deutschland, added: “We are taking the right decisions today to win the race in overcoming the market challenges of low interest rates, strict regulation and fierce competition which are putting the future of life insurers in Germany under strong pressure.
“Our strategy has been developed by listening carefully to all stakeholders and will follow three basic principles: to better serve our clients leveraging on our distribution strength, to offer smarter products using leaner processes thanks to new technologies and digitalisation, and to have a streamlined governance in placed that enables us to take faster decisions, achieve higher efficiency and more in depth market insight.”