Assicurazioni Generali (G) Investor Update summary

Strategic partnership and transaction overview

• Generali and BPCE signed a non-binding MoU to form a 50/50 joint venture, combining Generali Investments Holding and Natixis Investment Managers into a new entity, NewCo, with €1.9 trillion AUM as of September 2024, making it the largest asset manager in Europe by revenues and a top 10 global player.

• The joint venture will be governed with equal board representation, co-controlled structure, and experienced management from both groups, with headquarters in Amsterdam and operational hubs in France, Italy, and the US.

• The platform excludes certain Asian operations but includes recent acquisitions such as Conning and MGG, and will have a diversified presence in Europe, North America, and a growing footprint in Asia.

• The partnership is supported by a 15-year framework, with Generali providing €15 billion in seed and acceleration capital over five years to support private asset growth and new strategies.

• Closing is expected in early 2026, pending regulatory approvals and employee consultations.

Financial and operational highlights

• The transaction involves assets and activities valued at approximately €9.5 billion, with a diversified AUM split: 61% Europe, 34% North America, 5% Asia/other.

• Asset classes include 65% fixed income, 21% equities, and 14% private markets/other, serving insurers, pension funds, institutional, and retail clients.

• The combined entity expects cost synergies of €140–170 million and revenue synergies, with estimated total pre-tax run-rate synergies around €210 million and cumulative investment of ~€270 million.

• The addressable cost base for synergies is about 53% of the total €3.2 billion cost base, focusing on overhead, technology, and centralized functions.

• Pro forma 2023 figures: €1.9 trillion AUM, €4.1 billion revenues, 21bps management fee margin, 74% cost/income ratio, and €0.7 billion adjusted net income.

Growth strategy and market positioning

• The platform will leverage global distribution, cross-selling, and expanded investment capabilities, including private markets, alternative funds, and a network of over 60 offices in 25 countries.

• Key growth areas include private credit, infrastructure debt, insurance and pension asset management, and strong U.S. retail distribution, with opportunities in Asia-Pacific.

• The business mix will remain weighted toward fixed income but with increased exposure to equities and private assets, serving a diversified client base.

• Cathay Life remains a strategic partner, supporting growth in Asia.

• The platform is positioned to compete globally, benefiting from synergies and growth opportunities.