Our strategy

Our Strategy Strategy
Accelerate to excellence

Leadership in operating performance*

Optimise international footprint

We aim to maintain a diversified global presence by focusing on markets in which we can achieve a significant position and excellent performance. We will therefore dispose of the companies that do not meet specific profitability and future growth requirements in order to invest in those activities that generate higher returns.

At least € 1 bln cash proceeds from disposals

Rationalize the operating machine

We are committed to constantly improving the operating machine to maximize the Group’s potential, by implementing optimization initiatives such as streamlining the product portfolio, simplifying processes and integrating IT platforms. At the same time, we will invest in new competences enhance those activities that have higher value for stakeholders.

€ 200 mln net reduction in nominal OpEx cost base in mature markets

Enhance technical capabilities

We already have strong technical capabilities but to become the best player we will continue with price sophistication, risk selection and claims management in the P&C business while with the continuous improvement in the quality of our products and the capital return optimization in the Life business.

Best combined ratio
further improvement in outperformance vs peers
Guarantees maximum 0% on new retail business

Improve operating performance*

Rebalance the insurance portfolio

The share of products with low capital absorption and commission income will be increased so as to generate long-term value while protecting portfolio sustainability and increasing resilience in the face of market volatility.
We aim through the new Asset Management strategy to enhance investment capabilities and offer bespoke investment solutions to European companies and individual savings products.

~30 bp reduction in average portfolio guarantee to 1.5%
+6 pps on the total capital-light reserves
+150 mln Group net profit from Asset Management

Customer and distribution innovation

We will continue to be committed to our laser-like focus on customers and distributors with the introduction of specific, targeted innovations with clear added value.

€ + 2 pps
increase in retention

Strengthen the brand

We aim to become the top choice for consumers.
As to strengthen our brand we are focusing on consumer preference and client retention. Actions to improve such aspects are mainly taken in three macro-areas, i.e. the new look & feel of the brand, the shift to digital marketing channels and the content marketing based on advice to live healthier, safer life.

+ 3% brand preference in mature markets

Our people

As to ensure the attainment of the business strategy, respecting our values, we have developed the Generali People Strategy that is based on four priorities:

 

71,327
employees (-3.3%)
49.8%
(+0.4 pps)
50,2%
(-0.4 pps)

 

We measure and promote engagement

 In June 2017, we carried out the second edition of the Global Engagement Survey, a managerial tool for continuous improvement.

 

We want to accelerate the process of generating excellence by leveraging our strengths and rapidly acting upon improvement opportunities. We therefore commit ourselves to focusing our action plans on four global priorities in addition to local ones:

  • foster strategy cascading and communication
  • keep investing in performance management and meritocracy
  • accelerate on effectiveness and velocity
  • further enhance a diverse and inclusive culture.

More than 390 local actions were identified, initiated and communicated as of January 2018.

We create and promote a new global managerial system

We have developed the Managerial Acceleration Program (MAP) in order to strengthen the sense of responsibility and engagement in changing the corporate culture of the Group. By means of internal focus groups sessions, inputs were collected in order to identify the eight key managerial skills to empower our people: the Generali Empowerment Manifesto (GEM). 8,900 managers responsible for people trained by internal trainers by 2018

We boost a performance culture

By means of the Group Performance Management we promote engagement and a sense of responsibility for all our people so that they can contribute towards the attainment of our business strategy and strengthen transparency and meritocracy. The process was launched globally in 2016 with the implementation of numerous initiatives coordinated by the Group and managed locally, including classroom courses, e-learning modules and workshops for managers and collaborators.

86% Group employees involved in performance management activities in 2017* (+25 pps)
The dialogue on performance will be expanded to the whole Group by the end of 2018.

*The data exclusively refers to Group companies, equal to 60,140 employees (84.3% of the total), within the scope of the Group Performance Management process.

We improve diversity and inclusion (D&I)

Corporate Governance and Share Ownership Report 2017, p. 72 for additional information on the diversity of administration, management and control bodies

We are committed to promoting a culture of inclusion which ascribes value to individuals and diversity of all types, particularly with regard to cultural, gender, generational and disability diversity.

In 2017, we have set a Group D&I Council that is led by a business sponsor of the Group Management Committee in the person of Frédéric de Courtois and has the task of establishing objectives and actions for promoting diversity and supporting these in local situations. 
We are focused on training modules within managerial training programs as well as different programs and events which aim to analyse the issue in depth. A few examples:

  • Be bold for women for a group of international talents who have analysed in depth the theme of unconscious prejudices, particularly those which are gender-related, and have identified practical solutions for the elimination of barriers to gender balance and greater capacity of managers for inclusion
  • Inspiring Leaders on Diversity and Inclusion for 100 people and with top testimonials
  • Our differences, our strengths, with a report on unconscious prejudices and their impact on decision-making processes.

 

  • we provide succession plans for all key positions and career paths that facilitate professional growth with the aim of fostering internal growth in key positionschiave
  • we develop leadership skills at various levels in the organization through international training programs with the best Business Schools
  • we identify and develop talents at the local and Group level with specific internal and external assessment programs
  • we attract, select and retain the best people through internal mobility and training programs

  • we align the Group organization with the business evolution, with a clear model that is based on shared rules, local empowerment and integration mechanism
  • we identify and invest in new key capabilities, in particular those related to insurance sector through the Group Academy and qualified, internal trainers
  • we support smart working and, in general, we develop a new approach to working that empowers us by increasing our flexibility, autonomy and responsibility
  • we simplify our HR processes with a cutting-edge platform
88.7%
(-2.4 pps) trained people
33.2 average hours
(-10.9%) of training per capita
€ 54.7 mln
(-10.8%) training costs
  • we focus on customer needs, through the implementation of a Group NPS program (-10.9%) of training per capita
  • we value our ‘Client Heroes’, through recognition processes

As part of the operational risk management, the annual assessment of the categories that can impact on our people* was conducted. The results did not show significant critical issues. The Generali People Strategy implementation at Group level supports us in both mitigating any operational risks and managing other objectives, such as those related to the management of internal engagement and the empowerment of our resources, as well as to the management of internal talents and their skills.

*Basel III - category 3: Employment practices and workplace safety: losses arising from acts inconsistent with employment, health or safety laws or agreements, from payment of personal injury claims, or from diversity/discrimination events.

Innovation

*The achievement of the targets reported in this chapter is expected by 2018, with the exception of the Asset Management target that is expected by 2020. The target about the € 200 net reduction in nominal Opex cost bese in mature markets has been achieved a year in advance, in 2017.