The Italian group GENERALI has announced today its strategic lines of development until 2021, built on three strategic pillars which include initiatives that will each contribute towards delivery of the Group's financial targets: Profitable growth; Capital Management and Financial Optimization; Innovation and Digital Transformation.

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

The Generali 2021 strategy will continue the evolution of the business and is centered around four key differentiating convictions:

• European insurance markets will remain attractive. High private wealth accumulation will support the sale of Life and Asset Management products, while demographic trends and reduced public spending will drive the development of pension, health and welfare services.
• The Retail and SME markets are driving profitable growth. Retail customers will play a key role in future insurance markets, while the SME segment is a key opportunity in core markets like Italy and Germany.
• An integrated Insurance and Asset Management offer is key for customers worldwide. Customers are seeking integrated Life and Asset Management products to protect and grow their assets, while macro and demographic shifts are increasing demand for innovative P&C and Health solutions. This integration reflects the shift in focus from 'products' to 'customers' and from "protection and indemnity" to "prevention and servicing."
• Physical distribution is empowered and not replaced by digital platforms. Physical distribution networks will remain a competitive advantage in the industry as they are increasingly enabled by digital tools, which will allow for the delivery of higher customer satisfaction, productivity and efficiencies.

Generali 2021 will be supported by three key enablers which will drive the execution of the plan:

• Empower people for the future. Generali will continue to foster a customer-centric and innovative culture, nurturing global and diverse leaders and talents. Operating as an agile and adaptive organization with 100% smart working, Generali will help staff acquire new digital skills (50% target by 2021) while rewarding excellence and sustainable value creation.
• New Brand promise. Generali will ensure a consistent and distinctive brand experience built around the promise of becoming a life-time partner for its customers. Generali is targeting the best relationship Net Promoter Score among the European International players.10
• Continued commitment to sustainability. Generali 2021 is aligned with the Group's sustainability commitments. Generali also commits to grow green and social retail products by 7%-9%11 and to allocate EUR 4.5 billion to green and sustainable investments by 2021. Key initiatives with strong sustainability footprints include a Responsible Consumer scheme and the Enterprize awards for sustainable SMEs.

Generali 2021 - Financial Targets

• Growing earnings per share: 6%-8% eps CAGR range 2018-21
• Growing dividend: 55%-65% dividend pay-out range 2019-21
• Higher return for shareholders: >11.5% average return on equity 2019-21

Generali 2021 - Strategic Priorities & Targets

Profitable Growth

• Strengthen leadership in Europe: reinforce #1 market position
• Focus on high potential insurance markets: 15%-25% earnings CAGR 2018-21
• Develop global asset management platform: 15%-20% earnings CAGR 2018-21

Capital Management and Financial Optimization

• Increase capital generation: > EUR 10.5 billion cumulative capital generation 2019-21
• Enhance cash remittance: +35% cumulative cash remitted to holding 2019-21
• Reduce debt level and cost: EUR 1.5-2.0 billion debt reduction by 2021; EUR 70-140 million reduction in annual gross interest expense by 2021

Innovation and Digital Transformation EUR 1 billion total investment internal strategic initiatives 2019-21

• Become life-time partner to customers
• Enable digital transformation of distribution
• Transform and digitalize operating model

According to the Group's statement, GENERALI today is the market leader for insurance in Europe with EUR 63 billion of premiums - Based on IAS-IFRS gross written premiums in Europe for 2017 - and is able to leverage on a powerful distribution network comprising more than 150,000 agents and salespeople across its major markets. Following a comprehensive and successful financial (2012-2015) and operational (2016-2018) turnaround, GENERALI has delivered best-in-class technical and operational performance, achieving a P&C combined ratio of 92.8% and a Life new business margin of 39.2% in 2017. GENERALI also successfully launched a focused asset management strategy in 2017, with EUR 487 billion in Assets Under Management. GENERALI is on track to achieve all its 2018 financial and industrial targets.