Generali, joint venture with Natixis for new savings giant

MILAN (ITALPRESS) – Assicurazioni Generali and BPCE announce they have signed a non-binding memorandum of understanding to create a joint venture between their respective asset management companies, Generali Investments Holding (GIH) and Natixis
Investment Managers (Natixis IM). BPCE (through Natixis IM) and GIH would each hold 50 percent of the combined company, with balanced governance and control rights.
Specifically, the joint venture will create one of the largest global champions with 1.9 trillion assets under management, ranking
ninth globally in AUM and the leader in asset management in Europe with 4.1 billion in revenues. In addition, it will be the world’s leading player by AUM in asset management for insurance clients, with a clear path to continue to develop the platform as a global leader and expand further into the growing segment of insurance asset management for third-party clients. BPCE and Generali would retain full authority over asset allocation decisions for their respective assets. The joint venture will have the potential to create value through the solid combination of assets contributed by BPCE and Generali and Generali’s commitment to contribute seed capital of 15 billion, as well as through synergies and growth opportunities. BPCE’s Ceo, Nicolas Namias, will be appointed chairman of the BoD and Generali’s Ce0, Philippe Donnet, vice chairman. Woody Bradford, current Ceo of GIH, would serve as Ceo of the company and Philippe Setbon, now Ceo of Natixis IM, as deputy Ceo.
The joint venture would result from the contribution of assets and activities with a total value of about 9.5 billion.
The combined entity would cater to a diverse client base consisting of both groups and third-party clients. Insurance companies and pension funds would account for more than half of the assets (about 61 percent of AUM) with the remaining share distributed among other institutional investors, retail customers, and
wholesale (about 14 percent and about 25 percent of AUM, respectively). “As a leading global integrated insurer and asset manager, guided by a clear long-term vision as a life partner to our clients, Generali is committed to continuing the successful transformation and diversification of our Group. The creation of a joint venture with BPCE would represent a unique opportunity to create the leading asset manager in Europe and among the top ten globally. A company with strong roots in Italy, France and the United States, capable of responding to the evolving needs of clients, led by Woody Bradford, Philippe Setbon, Nicolas Namias and myself. Our home country, Italy, and all the other markets where we serve our clients, would benefit from an even stronger asset management platform with strengthened investment expertise that can bring real benefits to the economy,” comments Philippe Donnet, Group Ceo of Assicurazioni Generali. “This partnership with BPCE, with whom we share a similar culture and operational approach, provides the ideal conditions for a smooth and successful integration of our combined businesses. The joint venture represents a milestone since we launched Generali’s asset management business seven years ago and confirms the important achievements we have made over the past few strategic cycles. I am immensely proud of the great work done by our employees and affiliates over these years,” Donnet concluded.
(ITALPRESS).
-Photo: Generali-