Italy’s Generali aims at €5bn operating profits

Italy’s insurer Generali has announced a three-year plan to boost operating profit by a quarter following the implementation of a significant cost-cutting plan.

Mario Greco, who took office as chief executive in August 2012, aims to invesst in high-growth markets in eastern Europe and Asia, also implementing €600m cost-cuts.

Greco also promised shareholders operating profit of more than €5bn, up from €4bn expected at the end of 2012.

“We shall implement a revolution based on discipline, simplicity and focus. Today marks a significant milestone in reshaping Generali. The mandate from our shareholders is to improve returns and group profitability,” he said today.

Generali’s reorganisation follows a similar plan announced by Europe’s biggest insurers Aviva, Axa and Old Mutual.