Generali Italia has increased investments in recent years in private assets to support the domestic economy to approximately €4.7bn, chief investment officer Massimo di Tria said before the parliamentary committee investigating investment policies of first pillar (Casse di Previdenza) and second pillar pension funds.
The insurer invested in recent years in Italy particularly in infrastructure, to redevelop properties, in assets for the energy transition, and to finance small and medium-sized enterprises (SMEs), both through debt and equity, the CIO said.
Generali holds investments exceeding €40bn in Italian public or private issuers, as well as €10bn in properties in the country, di Tria added.
It is also actively involved with partly state-owned investment bank Cassa Depositi and Prestiti (CDP), and Italian stock exchange Borsa Italiana to set up dedicated vehicles to raise funds from Generali, CDP and third-party investors for allocation to Italian small-cap equities.
“Despite the initiatives implemented by various players, including Borsa Italiana, we observe a low weight of Italian institutional investors in […] Italy’s listed companies, with share volumes and valuations falling especially for small caps,” the CIO said.
Di Tria’s comments come as four Italian industry-wide pension funds are looking to hire an asset manager to invest €82m in mid and small-cap equities in Italy.
Increasing investments in the domestic economy are linked to the growth of the supplementary pension sector.
Generali’s current pension offering on the Italian market is broad and includes Individual Pension Plans (PIP), open pension funds, and investment services provided to pre-existing funds, occupational pension funds and first-pillar schemes, according to the insurer’s presentation before the parliamentary committee.
Total assets under management on behalf of pension schemes amount currently to over €40bn, it added.
“[However], without large pension funds, insurance companies and banks cannot take on too much additional risk compared to what they are already doing for regulatory issues and management of their liabilities,” the CIO said.
Generali also hopes that rules will change to allow alternative investments in PIP funds and open pension funds, it said.
“Structurally, we allocate funds to investments in BTP [Italian government bonds] which, at group level, today amounts to approximately €37bn,” chief executive officer of Generali Italia, Giancarlo Fancel, said during an audit to underline the role the insurer plays as a public debt holder.
He added that complementary pension provisions are “constantly increasing” in Italy, but are still far from levels seen in other countries, despite tax benefits.
Complementary pension schemes represent a “fundamental strategic asset” for Italy, Fancel added.
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Luigi is IPE's Berlin-based DACH correspondent.
His coverage includes regulation and the latest pensions and investments trends, and, being a native Italian, he also covers Italy’s pensions market.
He has reported from Italy and Germany on international politics and business for European and US publications including USA Today, Bloomberg BNA and for the investigative magazine L’Espresso. He was previously Germany correspondent for Mergermarket covering M&A.View full Profile
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