|Bid||N/A x N/A|
|Ask||N/A x N/A|
|Day's Range||19.35 - 19.35|
|52 Week Range||16.17 - 19.45|
|Beta (3Y Monthly)||1.11|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
(Bloomberg Opinion) -- Leonardo Del Vecchio’s sudden emergence as the biggest shareholder of Mediobanca SpA, Italy’s best-known investment bank, is fueling speculation of an even bigger shakeup in the country’s financial industry. The lender’s promise to pursue cautious growth looks vulnerable to a push for deeper change.Exactly what the eyewear billionaire has in mind for his 10% stake isn’t yet clear. Media reports suggest the 84-year-old Italian wants to lift his holding to as much as 20%, a huge undertaking — and not just financially. Considerable effort would be needed to obtain European Central Bank approval to own more than 10%. Del Vecchio must have grand ambitions.What’s more, the tycoon is not the best of friends with Mediobanca’s chief executive officer Alberto Nagel. The two have been at odds since a proposed investment by Del Vecchio in a Milan hospital was reportedly blocked by Nagel.Del Vecchio's recent comments appear critical of the Mediobanca boss. He hit a nerve by suggesting the bank might do better by expanding more aggressively in investment banking and relying less on income from its consumer finance business and its holding in the giant insurer Assicurazioni Generali SpA.UniCredit SpA, Italy’s biggest bank, could previously call the shots at Mediobanca before selling its own holding in the bank last week. That position let it wield influence over Generali too. Now the question is what Del Vecchio wants to do with the stake. He has also acquired a holding in Generali directly.While investors are right to fret about the peculiarities of Italian corporate governance, where minority shareholders can control the boardroom for their own interests, as a smart outsider Del Vecchio has spurred a useful debate. Mediobanca said on Tuesday that it wants to keep its 13% Generali stake until it finds an acquisition in wealth management that it needs to fund, and that he feels an obligation to keep it in Italian hands. But is it really a must have?At 4 billion euros ($4.4 billion), the value of the holding is far larger than what the bank might need for a rainy day. Proceeds from a sale could accelerate investment in more promising businesses such as private banking to generate higher returns — or they could be given back to shareholders. Or Nagel could do a bit of both. Under his four-year growth plan, Mediobanca sees returns on allocated capital in wealth management of 25% compared to 11% from Generali. Maybe it does make sense to shift more capital to the former.In fairness, that four-year strategy unveiled by Nagel this week should let the company build on its success in investment banking, consumer finance and wealth management. Mediobanca expects to bolster profitability to an 11% return on tangible equity from 10% and to boost investor payouts by 50% over the four years. Against a backdrop of Italian banks plagued by bad debt and an industry in Europe that’s mostly shrinking, Nagel deserves credit for dodging risky loans and focusing on the right businesses.Overall, Nagel is counting on average revenue growth of 4% and doubling the contribution to profit from wealth management by growing organically. But he’s still relying on returns from Generali too: The stake contributes one-third of income.It’s possible that Del Vecchio, who wields huge power at the eyewear giant EssilorLuxottica SA, will grow frustrated with the complications of investing in finance. Regulation has kept activist investors away from banking mostly. Even if he doesn’t stick around, Nagel may find his plans need to change.To contact the author of this story: Elisa Martinuzzi at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Billionaire investor Leonardo Del Vecchio, Mediobanca's biggest shareholder, said on Wednesday he aimed to create a stable ownership base for the Italian investment bank and Generali, the insurance giant it effectively controls through a 13% stake. Del Vecchio, founder of eyewear group Luxottica, became Mediobanca's biggest shareholder last week with a holding of just under 10% after the bank's decades-long partner UniCredit sold its entire stake. "Mediobanca and Assicurazioni Generali represent a strategic part of our economic system and need stability," Del Vecchio said in a statement that expressed support for the latest business plan unveiled by the bank on Tuesday.
MILAN/LONDON, Nov 12 (Reuters) - One comes from a wealthy family, attended Milan's best schools and has spent all his career engineering mergers at Mediobanca, Italy's most influential investment bank. The other was raised in an orphanage and was too poor to go to high school but at 84 is Italy's richest man, having built the world's biggest eyewear group from scratch. Mediobanca's boss Alberto Nagel, 54, and Leonardo Del Vecchio, who in less than two months has become the bank's top investor, are squaring off in a battle for control that is rattling the world of Italian finance.
Italy's biggest insurer Assicurazioni Generali reported a rise in 9-months profit on Thursday that was broadly in line with market estimates, though capital ratios fell due to regulatory changes and low interest rates. Generali's solvency ratio, a key measure of financial strength, stood at 204%, down from 217% at the end of 2018, due to expected regulatory changes and lower interest rates in the third quarter, the company said.
One simple way to benefit from the stock market is to buy an index fund. But if you choose individual stocks with...
(Bloomberg Opinion) -- Italy’s second-richest tycoon made his fortune in spectacles, and now he has ideas about how to run a bank. There is no doubting Leonardo Del Vecchio’s entrepreneurial flair. But his decision to take a 7% stake in Mediobanca SpA and opine publicly about its strategy merits caution. He is but one shareholder, and he should not dictate the lender’s strategy.Del Vecchio is not a naturally passive shareholder or owner. Chief executive officers at his glasses maker Luxottica Group SpA would rotate at an alarming pace. The merger of Luxottica with French lenses group Essilor diluted his dominant holding into a non-controlling stake and created a balanced board with representation from both sides. The arrangement soon fell into acrimony. That is an inauspicious backdrop for a large and potentially growing investment in Mediobanca.His motivations are unclear. The benign explanation is that this is portfolio diversification: Most of Del Vecchio’s wealth is tied up in the eyewear industry. He has some financial exposure to Italian insurer Assicurazioni Generali SpA and lender UniCredit SpA, but this is relatively small. The more worrying possibility is that it really is about meddling with another Generali shareholder — Mediobanca owns 13% of the insurer — or that it relates to some other personal agenda.Del Vecchio has reportedly said Mediobanca needs to be more ambitious in mergers and acquisitions, expand in investment banking, and rely less on the income it receives from Generali. It is not obvious all of these ideas would benefit other shareholders. Wealth management is where acquisitions might make sense for Mediobanca, but deals are risky given that the main assets — the people — can walk out of the door. Mediobanca CEO Alberto Nagel has been rightly cautious.Lifting exposure to investment banking activities, reviving a former strategy, would re-introduce more volatile revenue streams and risk lowering the multiple of earnings on which the shares trade.The function of the Generali stake is a trickier question. Corporate finance theory would dictate that Mediobanca should sell it and return cash to shareholders. If the bank needed cash in the future, it would then ask shareholders to stump up when it could show what the funds would be used for.That works for big, diversified corporations like Unilever NV. But a smaller, less well-capitalized, Italy-focused bank would probably find the capital markets unwilling to provide funds just when it needed them most — for example, in hard times when bid targets were most affordable. So long as there is a possibility that Mediobanca might want to do M&A, the stake is best seen as a financial resource to be retained.It’s possible that Del Vecchio’s vision and Nagel’s could align if Mediobanca finds a decent takeover target, which the Generali stake could pay for. But while Mediobanca’s existing strategy looks sound, and the group is well run, Nagel cannot be complacent. The Generali stake makes a big contribution to net income but doesn’t require any management effort. And Mediobanca’s central and treasury functions make an uncomfortably high dent in the profits that the other businesses bring in. An upcoming strategy refresh offers the chance for Nagel to set some hard targets for revenue growth and further cost efficiency that would dispel any suggestion of low ambition.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
If you want to know who really controls Assicurazioni Generali S.p.A. (BIT:G), then you'll have to look at the makeup...
PARIS/MUNICH/MADRID, Oct 1 (Reuters) - German insurer Allianz has emerged as the frontrunner to invest in the bancassurance business of Spanish lender BBVA, two sources close to the deal told Reuters, after Italian rival Generali pulled out of the race. The deal is worth more than 1 billion euros ($1.1 billion)and is expected to be sealed by the end of the year, the sources said. If successful, it would give Allianz a platform to revive its Spanish distribution network after a previous agreement with Banco Popular came to an end following Popular’s sale to Santander in 2017.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Caja de Seguros S.A. NOTE: On August 12, 2019, the press release was corrected as follows: The first sentence in the Key Rating Considerations paragraph was changed to: We rate Caja de Seguros S.A.'s (Caja) insurance financial strength Ba3 on the global local currency scale. Revised release follows. New York, August 07, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Caja de Seguros S.A. and other ratings that are associated with the same analytical unit.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Generali Deutschland AG and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
The Benetton family wants Generali to remain in Italian hands and is ready to tighten its grip on Europe's third-biggest insurer along with other Italian investors, Luciano Benetton said in a newspaper interview. Luciano is one of the four siblings who founded the Benetton industrial empire, which ranges from the eponymous clothing company to infrastructure group Atlantia and travel caterer Autogrill.
Generali, Italy's biggest insurer, reported a larger-than-expected 28 percent rise in first-quarter net profit helped by asset sales, though capital ratios fell due to regulatory changes. Generali's solvency ratio, a key measure of financial strength, stood at 207% at the end of March, down from 217% three months earlier, largely due to expected regulatory changes, the company said. Analysts had looked on average for a solvency ratio of 213% in the first quarter in a consensus provided by the company.
Foreign insurers including Generali and Prudential Plc are in early talks with authorities to enter China's private pensions sector, people with knowledge of the matter said, as Beijing opens up to overseas companies. Hong Kong-based AIA Group and Manulife Financial are also considering similar moves, they said. Beijing gave approval to the first foreign joint-venture firm to establish a pensions insurance business last month and two of the people said China has been running pilot projects in three provinces involving foreign firms.