Assicurazioni Generali (G) Investor Update summary

Strategic rationale and transaction overview

• Generali and BPCE signed an MoU to create a 50/50 joint venture, forming a €1.9 trillion asset manager, the largest in Europe by revenues and a top 10 global player, with balanced governance and board representation.

• The partnership leverages complementary strengths, equal governance, and a shared vision for industry trends and client needs.

• The joint venture will benefit from a robust centralized risk and compliance system, experienced management, and a strong presence in France, Italy, and the US.

• The platform excludes certain Asian operations but includes recent acquisitions such as Conning and MGG.

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

Growth strategy and operational integration

• The combined entity will focus on scaling third-party business, expanding private asset capabilities, and leveraging a global distribution network.

• Generali will provide at least €15 billion in seed capital over five years, supporting private markets growth and aligning interests with clients.

• The business will have over 60 offices in 25+ countries, with strong distribution in the U.S., Europe, and Asia-Pacific.

• Cost synergies are estimated at €140–170 million and revenue synergies at €40 million, with a prudent approach to integration and synergy realization.

• A detailed three-year integration plan has been developed, focusing on technology, data, and operational efficiency.

Financial impact and stakeholder benefits

• The joint venture is expected to deliver 2%-3% EPS accretion for Generali after full synergy realization, with a run-rate increase of over €100 million.

• The transaction is accretive to adjusted net result and cash from year one, with a broadly neutral impact on group solvency and CET1 ratios.

• Dividend distribution will be limited in the first two years due to a preferred dividend mechanism, but will increase as synergies are realized.

• Clients gain a comprehensive offering and enhanced service; employees benefit from broader career opportunities; investors access a new global leader.

• Both groups retain full authority over asset allocation for their respective assets.