G Generali

By Giovanni Legorano 

MILAN--Assicurazioni Generali SpA looks set to appoint Philippe Donnet as the new chief executive of the Italian insurance company, according to people familiar with the matter.

Generali's nomination committee is set on Friday to propose Mr. Donnet, who is currently head of the company's Italian division, as the group's chief, said the people.

The committee, which is made up of three board members including the board's chairman, also plans to propose that Chief Financial Officer Alberto Minali becomes general manager of the company, assuming a dual role.

The committee's proposals will then be submitted to Generali's board, which will meet on March 17 to approve the company's 2015 earnings.

Mr. Donnet would succeed Mario Greco, who decided earlier this year to leave Generali to become Zurich Insurance Group AG's new head, after almost four years at the helm.

Mr. Greco is widely credited to have turned around the company. Since the summer of 2012, he embarked on a new strategy leading to the shedding of assets, exiting from some loss-making investments in Italian companies, such as Telecom Italia, and refocusing Generali solely on insurance. He made the company more profitable and financially stronger, raising its capital levels.

Mr. Donnet would take on the company at a time when conditions in financial markets make it more difficult for insurers to make attractive returns.

Europe's insurers and banks are grappling with tougher regulations and low or negative interest rates in much of the region. They are putting pressure on finances and squeezing profit margins amid market volatility, with investors jittery about the prospects for global economic growth.

Alberto Nagel, chief executive of Mediobanca, Generali's largest shareholder with a 13% stake, recently said he advocated a new chief executive, who would continue on the path of capital strengthening and profitability launched by Mr. Greco.

The people familiar with the matter said most board members favored an internal appointment to guarantee continuity with the current strategy of the insurer.

Mr. Donnet joined Generali in 2013, after almost three decades spent with French insurer AXA SA, where he has been head of its southern European, Middle Eastern, Latin American and Canadian operations, among other roles.

Write to Giovanni Legorano at giovanni.legorano@wsj.com

(END) Dow Jones Newswires

March 10, 2016 09:04 ET (14:04 GMT)

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