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Investing.com -- Generali (OTC:ARZGY) on Thursday said aims to distribute over €7 billion in dividends and buy back more than €1.5 billion in shares by 2027.
This new strategy exceeds market expectations, especially for earnings growth, dividends, and capital returns.
Analysts at Jefferies noted that the insurance company’s new earnings per share (EPS) growth target of 8% to 10% surpasses previous projections.
Jefferies had anticipated EPS growth of 9% in 2025, 8% in 2026, and 7% in 2027, while market consensus, as per Visible Alpha, stood at 11% in 2025, 8% in 2026, and 7% in 2027.
This puts the company’s new target above initial estimates, reinforcing confidence in its financial trajectory.
Dividend growth expectations have also been raised. Generali now aims for a compound annual growth rate of over 10% in dividend per share between 2025 and 2027.
This is higher than Jefferies’ earlier projection of a 7% CAGR and the market consensus estimate of 8%.
The €7 billion cumulative dividend target is broadly in line with previous expectations. Jefferies had estimated €7.2 billion in total dividends over the period, while the market consensus was slightly higher at €7.4 billion.
Generali’s latest confirmation of surpassing €7 billion signals a firm commitment to maintaining robust shareholder distributions.
In terms of share buybacks, Generali has also gone beyond what analysts were expecting.
Jefferies had anticipated annual buybacks of around €500 million, with some potential upside.
Market consensus was slightly below this figure, as not all analysts had factored in recurring buybacks.
Generali’s new target of more than €1.5 billion over three years, exceeding €500 million annually, provides clarity on its capital return strategy and underlines its confidence in cash flow generation.