Over the past 15 years, we have profoundly transformed our corporate structure and business model, evolving from a bank organized as a holding company to a specialized financial group. We have sold non-strategic investments and dissolved shareholders’ agreements and cross-shareholdings.
Since June 2013, we have sold investments worth a total of €2 billion, realizing capital gains of around €700 million. This process was substantially completed during the term of the 2016-2019 plan, over the course of which we sold the remaining holdings in our investment portfolio, with the exception of our 12.9% stake in Assicurazioni Generali. Our investment in this insurance company is now the Principal Investing division’s main asset.
Our stake in Assicurazioni Generali is a quality investment considering the company’s outstanding solidity and sound financial results. A major contributor to the Mediobanca group’s results, it anchors revenue and drives net profit and returns (ROAC) above the cost of capital despite the increasingly tighter regulatory framework.
It is also a valuable option for the future: the partial sale of our investment in Assicurazioni Generali would be a source of capital for other, potentially significant acquisitions to grow our core businesses.
The investment in Assicurazioni Generali is an integrated, consistent part of our business model because it guarantees substantial revenue from the insurance business (another important diversification factor) today and could be a future source of capital for the banking business tomorrow.