Since June 2013, when we presented our 2014-16 strategic plan, we have sold stakes worth a total approx 2 billion euros, generating gains approx 700 million euros. Our main investment today is the Generali stake. The other stakes held by the Principal Investing division are treated as Fair Value trough Other Comprehensive Income (FVOCI).
Rationale for Assicurazioni Generali investment:
- Profitable investment in all regulatory scenarios (ROAC 2019: 15%)
- Stabilizing factor for group revenues and profits, vital in a banking scenario reflecting widespread depression and low profitability
- Source of capital increase (revenues of 320 million euros in FY 2019)
- Capital resource to be used to develop and strengthen the banking activities.
Further information on our equity investments is available in the section on Our activities