Generali: the new move is coming after the takeover bid on Cattolica

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Closing without infamy and without praise today for Generali who took a breath away after three consecutive uphill sessions.

Generali remains at the post and does not follow the Ftse Mib

As recently as yesterday, the stock gained 0.8% and today remained firm at the stake, without getting involved in the bullish cue of the Ftse Mib which reached new highs of the year at 22,570 points, showing a progress of almost half a point. percentage.

Generali, on the other hand, spent the entire session close to yesterday’s close, finally stopping on the parity of € 17.085, with over 3 million shares traded, below the average of about 5 over the last 30 days. 3 million.

General: the takeover bid for Cattolica Assicurazioni was launched on Monday

Generali has attracted the attention of the market since the beginning of the week, in the wake of the launch of the takeover bid for Cattolica Assicurazioni, at the unit price of € 6.75 per share.

The Trieste-based company aims to purchase the entire capital of Cattolica and achieve the revocation of the related shares from listing on the Mercato Telematico Azionario.

Generali vying for NN Investment Partners

Meanwhile, for Generali there are other possible news on the way, given that today investors looked at the latest rumors that have not had any impact on the market.

According to what reported by Bloomberg, Generali would be among the suitors of NN Investment Partners, namely the asset management division of the Dutch NN Group.

Among the stakeholders there would also be UBS, Allianz, DWS and various American operators and according to what Il Messaggero reports, Intesa Sanpaolo could also be a potential buyer.

Some data on NN Investment Partners

By 2020, NN Investment Partners had achieved an operating profit of 152 million euros compared to 161 million in 2019) and a net profit of 111 million, with 300 billion euros of assets under management, of which approximately 200 billion relating to Life insurance premiums of NN Group and over 100 billion euros of third-parties.

According to rumors, the business unit would be valued at around 1.5 billion euros, that is to say at a price-earnings multiple of 14 times, which Equita SIM analysts believe is reasonable and substantially aligned with the sector valuations.

Generali: Equita analyzes the transaction on NN Investment Partners

The transaction would be fully consistent with Generali’s M&A strategy, aimed at further growth in Asset Management and at increasing the assets under management managed on behalf of third parties.

The size of the transaction would also be consistent with the company’s target of dedicating 3-4 billion euros for inorganic growth over the period of the industrial plan, i.e. in the three-year period 2019-2021.

In particular, according to the Milanese SIM, the possible acquisition of NN Investment Partners would make it possible to increase the operating profit of the AM division by approximately 25% and assets under management by over 30%.

Preliminarily, analysts would see room for both revenue and cost synergies, considering that in 2020 NN Investment Partners had a Fees / Average AUM ratio of 15 basis points and a Cost / Income ratio of 65%, compared to Generali’s 45%.

Pending further developments, Equita SIM analysts maintain a cautious view on the stock, with a “buy” recommendation and a target price of 19 euros.

Trend-online Deputy Director, born in 1978.
After completing his studies at the Classical High School “Antonio Calamo” of Ostuni I entered the world of economics.
For about twenty years I have been dealing with Stock Exchange and Finance. After having worked as a financial promoter for several years, in 2005 I joined the Trend-online team as an editor, to later become deputy director of the cylinder head. Among other countless activities, I take care of maintaining relationships with all the experts, analysts and traders, consulted daily by Trend-online.

My motto is? “Life is like a mirror, if you look at it smiling it will smile at you”.

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