for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

UPDATE 1-Insurer Generali may subscribe to rival Cattolica's cash call - report

(Adds further details from interview)

MILAN, Jan 29 (Reuters) - Italian insurer Generali will look at the terms of capital increase plans of smaller rival Cattolica and will likely subscribe to it but only pro-rata, its Chief Executive Officer Philippe Donnet told la Repubblica on Friday.

The company will achieve its 2021 financial targets and will be able to pay “attractive” dividends in the years to 2024, he said in an interview with the Italian daily.

Generali is Cattolica’s single largest shareholder with a 24.4% stake, ahead of Warren Buffett’s Berkshire Hathaway which holds 9%.

Cattolica has planned to raise 200 million euros ($242.12 million) through the route of a cash call to strengthen its capital position and comply to a number of requests by industry regulator IVASS.

Donnet said dividends that were not paid in 2020 due to a COVID 19-related regulatory ban will be paid by end-2021, in compliance with IVASS’ recommendations.

“We said we would pay out 4.5-5 billion euros ($11.50 billion) in dividends in three years and this commitment will be met,” he said.

He added that the insurer’s revamp plan approved on Wednesday - which gives the executive more strength in delivering targets and develoing p key business areas such as asset management - will help it achieve 2021 targets.

“And its guidelines will also be useful for the next strategic cycle, which will be outlined in the 2022-2024 plan,” ha added.

$1 = 0.8262 euros Reporting by Maria Pia Quaglia; Editing by Rashmi Aich

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up