Generali tweaks M&A outlook, Central Europe may trump ‘opportunistic’ view to Asia

Italy’s  Generali may scrutinise central and eastern Europe for mergers and acquisitions (M&A) opportunities for its  €3 billion war chest even ahead of its interest in growth opportunities in Asia, chief executive officer Philippe Donnet (pictured) indicated in an interview for Bloomberg.

"We will continue strengthening our leadership position in Europe, especially in central and eastern Europe," Donnet said in a change to tones issued at the group's recent investor day presentation of a new three-year strategy.

At that Wednesday (December 15) event, Donnet and fellow management board members had spoken of "strengthening" Generali’s position in Europe, but indicated that the M&A hunt for growth lie primarily in Asia.

Comments for Bloomberg make Asian endeavours seem less focused. "In a very opportunistic way we will look at growth opportunities in Asia as well," Donnet said in the televised interview.

The home market of Italy is off the radar screen after the recent acquisition of Cattolica Assicurazioni. "Definitely outside of Italy," Donnet said.

In asset management, any M&A will be used to give Generali a global reach, Donnet said, to closely match signals from the recent investor day festivities. The UK and US were named again as likely key elements of Generali's search.

In central Europe, Generali brags of €6.9 billion in 2020 gross written premiums across a slew of markets. The group claims double digit P&C market shares in Austria, Czechia, Hungary and Slovakia plus a nearly 5 percent share in Poland. In life, Generali has a notable 22.6 percent of the Czechia market, 15 percent of Austria and nearly 10 percent stakes in Hungary and Slovakia., IR claimed.

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