Earnings call transcript: Banca Generali Q2 2025 sees record profits, strategic expansion

Banca Generali, with a market capitalization of $6.4 billion, reported a record net profit for the first half of 2025, driven by strong recurring net profit and net interest income. The bank is targeting further growth through strategic partnerships and product innovations. The stock showed a minor increase of 0.04% following the announcement, reflecting a stable market reaction. According to InvestingPro analysis, the company maintains a healthy P/E ratio of 14.18 and offers an attractive dividend yield of 5.79%.

Key Takeaways

• Banca Generali reported a record net profit of €176.3 million for H1 2025.
• The bank is expanding its insure banking business in partnership with Generali.
• Operating costs are expected to normalize to 6-7% in the next 2-3 years.
• A new asset management product is set to launch in October.
• The total capital ratio remains robust at close to 20%.

Company Performance

Banca Generali has demonstrated strong performance in the second quarter of 2025, achieving a net profit close to €90 million. The bank’s focus on innovation and strategic partnerships has positioned it as a leading private bank in the market. With total assets reaching a record high of €106.5 billion, Banca Generali continues to capitalize on its competitive advantages. InvestingPro data reveals the company has achieved a robust revenue growth of 7.4% and an impressive return on equity of 31%. For deeper insights into Banca Generali’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Financial Highlights

• Record net profit: €176.3 million for H1 2025
• Q2 net profit: Close to €90 million
• Net interest income: €82.4 million
• Gross recurring fees: €271 million, up 6.9% year-on-year
• Total assets: €106.5 billion
• Total capital ratio: Close to 20%

Outlook & Guidance

Banca Generali is looking forward to the national rollout of its insure banking initiative in November, with expectations of first results by the first half of next year. The bank aims to achieve €310 million in net interest income and maintain an asset management product range of 140-142 basis points. The strategic plan for 2026-2028 focuses on strengthening the partnership with Generali.

Executive Commentary

CEO Gianmaria Mossa emphasized the importance of the insure banking initiative as a future growth engine, stating, "Insure banking is an engine of future growth for the bank." He also expressed confidence in meeting targets, noting, "We are very confident to deliver on target." The integration with Intermonte was highlighted as transformative, with Mossa describing it as a "game changer."

Risks and Challenges

• Economic uncertainties could impact net inflows and asset growth.
• Regulatory changes in the banking and insurance sectors may affect operations.
• Market volatility could influence performance fees and investor sentiment.
• Integration of new technologies and distribution channels poses execution risks.
• Competition in the financial services industry remains intense.

With a strong focus on innovation and strategic growth, Banca Generali is poised to continue its upward trajectory, leveraging its partnership with Generali and expanding its product offerings. InvestingPro analysis indicates the stock has demonstrated strong returns over the past five years, with a relatively low beta of 0.79, suggesting lower volatility compared to the market. While current valuations suggest the stock may be trading above its Fair Value, investors can access additional ProTips and detailed financial metrics through InvestingPro’s comprehensive analysis platform.

Full transcript - Banca Generali (BGN) Q2 2025:

Conference Operator, Cosco: Good afternoon, this is the Corsco conference operator. Welcome and thank you for joining the Banca Generali first half 2025 results conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on the telephone. At this time, I would like to turn the conference over to Mr. Gianmaria Mossa, CEO and General Manager of Banca Generali. Please go ahead, sir.

Gianmaria Mossa, CEO and General Manager, Banca Generali: Good afternoon and thank you for attending our first Alpha Results conference call. The overall results were pretty solid, driven by the current business with recurring net profit at €176.3 million, reaching its best level ever. It was driven also by asset expansion with client assets at new record highs at €106.5 billion. The first part was also very important for us because we set up the insure banking business thanks to the partnership with Generali and we will deep dive in the last section of the presentation. Let’s start as usual by numbers. Net profit page four. The second quarter closed at almost €90 million, basically driven by recurring net profit. The overall result of the first half as already mentioned closed at €176 million and the contribution of variable net profit closed at €23.9 million with negligible contribution in the second half.

The net profit and the recurring component were very well supported by the net financial income page five number very strong, basically driven by net interest income and also trading gains. The net interest income closed at €82.4 million thanks to asset expansion and then the trading gains and others close at €6.6 million including also Intermonte. If we focus on the total net interest income bottom of the page you see it was pretty stable in the quarter 2.08% and we are confident to stay at or higher for the remaining part of the year. We have a target of 200 basis points and stable assets page six. The other component of recurring fees is about gross recurring fees. The gross recurring fees closed at €271 million, slightly down. We will see that the slight reduction was temporary and basically driven by market effect.

The overall first half compared to the first half of last year closed higher by 6.9%. As you can see, variable fees contribute marginally in the second quarter €8 million. The recent recovery with the financial markets allowed us to have 25-30% of the overall assets in BG Fund measuring Luxembourg at or very close to the high water mark. For July the performance fee are already in line with the results of the second quarter. We were saying that the gross recurring fees suffered by the market crash at the beginning of April. This is pretty clear at page seven where we with a deep dive on investment fees you see management fees close at €220 million. This is basically driven by two major aspects.

The first one is driven by lower average assets under management and the second driven by lower margin due to market crash and a more conservative asset allocation. We are confident to confirm for the second half of this year a range between €140 million and €142 million driven by new initiatives that we are going to launch in September during our convention regarding advisory fees. Instead, you see the second quarter close in line with the first quarter at €13.5 billion. Page 8, you see the ADEX fees component. Overall positive result with mixed trend. First of all, you see lower entry fees and this is basically driven by reduction of the structural products at the beginning of the quarter, strictly connected with market. While we see higher banking fees and higher brokerage fees. This is also thanks to the inclusion of Intermonte members.

In particular, brokerage commission closed at €19.5 million and banking fees at €8.3 million. Page 9, let’s move on to their cost. Total payout ratios are in line with our projections. The overall payout is 47%, of which 35.9% on ordinary payout and 11.1% on the cost for growth. This is pretty stable over time and we are confident in maintaining this level. The second row, you can see how the CSPS on net interest income is declining and lines the reduction of the yield of the market. Last, the payout of third party closed at €6.2 million. This is a base effect of the market but in absolute terms. Also in this case, we saw a reduction. Page 10, we have the detail of the operating cost. The non-core items are in line with the first quarter while the core operating cost closed at 8.2%.

This is basically driven by specific investments for the setup of the insure banking business and for the implementation of specific for this year. We do expect to stay around this level while in the next two, three years we have a projection to normalize this number in the range 6-7%. Page 11, the usual representation of the operating leverage with operating costs on total assets lowest level at 0.28% and cost/income ratio just slightly higher. Page 12, to sum up, I’m confident on the income component for the second part of the year thanks to stable margin on the net interest income and stable, a little bit higher, marginal assets under investment. The costs are well managed, so under control, but with specific investments to introduce a new distribution channel within insure banking and to enhance productivity with AI-driven productivity enhancements.

If we look at below the trading line, total loan operating charges in the year-on-year comparison flows lower, benefiting from lower regulatory contribution to banking and insurance funds. Last but not least, tax rate is in line with our projection between 26% and 27% to 26.3%. Balance sheet, page 14. As we said, asset expansion. Overall, total deposit closed higher at €15 billion from €14.5 billion, and the cost of funding is slightly down in line with resolution of market rates. If we look at page 15, same trend for the total asset interest-bearing assets closed higher from €15.4 billion to €16 billion, and the yield on interest rate assets is in line with cost of funding, slightly down. The result is pretty stable. Net interest margin yield at the confirmation of a target above 200 basis points for the second half of the year.

Multiplying this margin for the current level of the interest-bearing assets, you can work out a target for the year at around €310 billion or higher. Page 16, you see the capital and liquidity ratio. Total capital ratio solid, close to 20%. Consider that the PCR includes the impact from CRR 3, includes the first-time integration of Intermonte, and even more important, it includes dividend provision in line with the current dividend policy or 82% of the overall result. So €164 million already constitutes a provision for the dividend policy. Leverage ratio and liquidity ratio well above the rep requirement. Next section, the inflows, assets, and recruiting. We already said that total assets achieved a record high €106.5 billion with more than €71 billion in assets under investment. Very promising trend underlying the asset under investment. If you move to page 19, you see the managed products recovering.

We are on €45.8 billion to €49.1 billion, and you see also recovery in the traditional life policies, positive contribution for future profitability. First of all, an increasing rate of raspberries on the total management solution driven basically by financial graphics expansion. Financial graphics was at €12.9 billion or €1.4 billion of increase year-on-year. In the fund industry, we continue to see the ongoing rebalancing between third-party funds and house funds. Now NAOF funds account for €12 billion compared to €11.31 billion same period as last year. Page 20, we start looking at net inflows. You see the income quality. Out of the €3 billion of overall total net inflows, €1.6 billion has been invested in assets under investment. On the right you see the details of this 1.6. Most of these numbers have been invested in assets under management. €1.5 billion, or 50% of the total net inflows.

With €1.5 billion in human stage 2 1, you can see that has been invested proportionally 50% or more or less 50% traditionalized policies and €800 million in managed solutions with a particular focus on financial matters. €600 million and in our fund, €300 million. Last page regarding inflows, page 22 you see the net interest by acquisition channel. The current uncertainty over the exchange public offer creates a stop in the recruitment activity. There are some cues, some positive cues, but it’s clear that we have a temporary slowdown. I can say that impressive the number of interviews that we are having and the feedback. I’m pretty convinced that as soon as we will know the result of the exchange public offer, you will see an acceleration on the recruitment number. July in terms of total net inflows is pretty strong, higher than last year.

I think that the most important part of this presentation is the business update part, because I will explain why I’m so excited to the idea to start with the insure banking business, thanks to the partnership with Generali. To understand the difference, the potential of this partnership, you have to go through numbers at page 24. What you can see on page 24, we start with a slide of the Italian targetable financial household wealth. What we mean by targetable financial household wealth is the total financial household wealth, less the less liquid assets, for example not listed equity, and less the assets that we do not allocate to a specific distribution channel. If you look at on the left, you see the breakdown of the Italian targetable financial assets in two major cases. The first one, 24.5%, is about insurance products.

The remaining 75% is about current account deposits and asset management. It means that with this representation, the overall contribution of the insurance product accounts for €920 billion. It means that for each euro invested in insurance, you have other €3 invested in other products. At the center of the page you see the breakdown of these targetable financial household wealth in three major distribution channels. The first one refers to insurance agents. You know, insurance agents manage only a part of their client assets and is fully invested in insurance products. The €192 billion of the insurance agent refers to only insurance products. The remaining part of the insurance products are distributed by the other distribution channels. You can see in the second column and the third column that the penetration of insurance products in the private banking and the penetration of insurance products every day is pretty constant.

It is at around 20% of the total assets. Now, starting from the consideration that the insurance agent manages only a part, if we adopt the same percentage, so 20-25% allocation to this asset, you would have a potential wealth of €750-950 million. It means that the clients reach my payday basis. Each one has €1 insurance policy with the sale agent and €3-4 with another player in another distribution channel. The good news in this case is that if you focus on the insurance agent in the market, it is well known that the most performance and, say, qualified player is Generali. The Generali agents account for more or less 50% of the entire business. If you divide it by two, the range you would have the potential of the clients reached through the Generali agency. We are talking about a multiple of Banca Generali.

My target is to reach at least 10-15% of this target in a 10-year time. If you work out the numbers, you will see that for us it is a tremendous opportunity. For this reason, we signed an important contract with Generali. The 17 of Echoes, page 20. We already presented this agreement in the previous conference call. Here there are some details. The first three bullet points are about the different models to reach the clients of Generali. The fourth bullet point is about the capabilities of Generali in managing insurance products for the financial assets, the risky assets. Let’s focus on the different way we can reach the Generali client. Move on page 26 and here basically you see three different models. The first one is well known, we provide with numbers every quarter and it’s about financial planning of agency.

An agent of Generali receives a mandate by Banca Generali to distribute banking and finance products. You have one professional with two mandates, one for the insurance products by Generali and one for banking Sanoflora by Banca Generali. This is well established as a business and in the agreement here the goal is to accelerate the penetration of this model. The second one in the middle of the page, Direct Issue Banking, is probably the newest one. It’s about providing banking products and services to Generali clients directly through the distribution channel of Generali with the support of remote banking and digital tools provided by Banca Generali. We will deep dive later. The third one for us is at the moment just a pilot. We launch a couple of pilots, pilots justified because it is something that has been adopted by other competitors.

The insure banking business has been launched in all major competitors of Generali in Italy, Zurich, Allianz, and Unipol. There is a mix of these models. In one case, the Serbian is the most important. For us, it’s just a pilot. Page 27. We start with the FPA model, so the one you already know. We show the numbers so far achieved. You see that in 2022 there is an acceleration. 2022 was a sort of watershed and was driven by the increase of interest rate. With an increase in interest rate, the outflows from insurance products accelerated and the agents started asking for other products to retain part of this outflow. The reason behind this acceleration is a spontaneous request for this kind of mandate from agents of Generali. Now this business accounts for €2.3 billion.

Of course, you see a slowdown in the last period that is driven by the uncertainty of the exchange public offer. In terms of professionals, you see that from 74 we exceeded 100 in just a couple of years. Here the scope is to accelerate this. Page 28 is a new agreement. On June 30th we signed a new contract, a new agreement with Alleanza. Alleanza is to me one of the best and performing distribution channels in Generali and intelligence well lived by the Pacero. We agree that the time is ready to raise the bar and increase the penetration of their clients. Actually, the distribution channel of Alleanza counts on more than 10,000 professionals and they provide insurance notes for almost 2 million clients.

Here the strong conviction shared by myself and Davide is that thanks to this very performing distribution channel, we will increase the cross selling and the upselling by opening up the distribution of banking products and services through their channel. The priorities of this partnership is first of all to open up the distribution of banking products and banking services through Alleanza. The second priority is to enlarge the insurance portfolio, providing hybrid solutions similar to the ones we provide to our clients. Specifically for the different targets of clients called Stille, as you know, Stille Libro and a different version still in Stille Unico. We are going to provide the same insurance wrappers to Alleanza clients with Banca Generali with the responsibility to manage the underlying. Why are we so confident?

The distribution channel is very performing, is well diversified, and they know how to offer very complicated products like protection. We start with cross selling by providing to the clients also banking products and deposits, and then upselling by moving from standard insurance products to very sophisticated and personalized solutions well known in Banca Generali. This kind of product, as you know, represents probably the most successful platform we ever launched in Italy. We will expand the distribution from private banking to the affluent market. Coming to the conclusion, page 29, as Board of Directors on the 26th of July, we launched a new strategic plan, 2026, 2028. This strategic plan has been developed on extended loan basis. One of the most important pillars of this new strategy is based on the partnership with Generali, the insure banking in particular.

We already announced it to the professionals of Alleanza the 17th of July. We have already organized network kickoff convention for October 9th. The really good news is that the national rollout will start as soon as November of this year. I am very confident to start seeing numbers as soon as the first half of next year. Insure banking is an engine of future growth for the bank. As you well understand, we are very committed in delivering our new strategic plan. We have several initiatives. Intermonte is going much better than expected. AI is a game changer for the procedure of financial advisors and then insure banking and more to come. We are organizing a convention for September in which we are going to launch new products to increase profitability in the asset management business. We are definitely not distracted by the pending voluntary exchange public offer.

Despite this short term uncertainty, we are very confident to deliver on target at least €6 billion of net inflows, at least €3.5 billion assets under investment. We confirm profitability in the net interest income. We confirm a range between 140 and 142 basis points in the asset management products. We do expect to expand assets. We are confident to close very well this year and to start in better shape thanks to municipal banking also. I will hand over to the Q&A session. Thank you.

Conference Operator, Cosco: Thank you. This is the Cosco conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. To remove yourself from the question queue, please press star and 2. Please pick up the receiver when asking questions. Anyone who has a question may press star and 1 at this time. The first question is from Marco Nicolai of Jefferies. Please go ahead.

Good afternoon. Take questions for me. Assets under investment flows improved considerably in May and June compared to April despite the volatility around the M&A scenarios. What do you expect for the second half? I see you reiterated the annual guidance, but if you could give us some clarity on the trends you expect, maybe in the various product lines, that would be very interesting. Another question on the brokerage and banking fees. It’s been two quarters. You are at or above €19 million. Is this the new run rate within Intermonte? Another question on the cost of risk that increased this quarter. Can you give us some color on the drivers? Sorry, last question on the FBA agents. Now you’re on 107 of these agents. Where do you expect to be in, say, one or two years’ time? Also, thanks to the Alleanza partnership. Thank you.

Gianmaria Mossa, CEO and General Manager, Banca Generali: Thank you. Let’s start from the detail of assets under investment for the second half of the year. I do expect a contribution, let’s say close to 50% but the needs will change. I’m more optimistic on the asset management for fund for the new offer we are going to launch at the beginning of October and announced at our convention in September. In the insurance space we do expect again a release for a new release of the insurance wrapper. Overall, I do expect better quality in terms of profitability, constant share of the overall total net inflows, brokerage fees. Short answer yes. Company to stay at or above €90 million. We are expanding the offer, onboarding the clients, launching new strategies. Brokerage is working very well. We said that this should be a floor. FPA agents. You have to consider FPA and Alleanza, two different projects.

Alleanza is about distributing products through their distribution channel. I do expect to at least involve 2,000 of their professionals next year. It will take time, but I’m sure that at least 2,000 will be on board before the end of next year. It means 2,000 professionals offering banking products, banking services and then a new insurance solution not to new clients, but to their existing clients. The target is often clients. Something absolutely new for us. FPA is a different story. FPA means state agent working in an agency asking for a mandate to be able to provide banking and finance products at Banca Generali. It takes more time and it’s about different kind of clients, more upper, upper and affluent clients.

We are going to disclose the targets on this specific project when we will release our three-year strategic project as soon as we are going to know the results of the pending public offer and for the cost of risk I will ask Tommaso to answer. Thank you. Gianmaria. The quality of the trade is postponed, is not changed. Our policy continues to be very safe from this point of view. We have just a spike, which is a contingent moment in the first half, which is linked to basically also some specific position, where we had a write-off, which is more than to the credit activity, to the lending activity sold into some specific guarantees due to some specific client or something that is not going to be, let’s say, recurring, let’s say that you will have in the future.

It’s just a spike that we are in this quarter and the quality of the portfolio is unchanged.

Thank you.

Conference Operator, Cosco: The next question is from Elena Perini of Intesa Sanpaolo. Please go ahead.

Yes, good afternoon and thank you for taking my questions. I’ve got actually three questions. The first one is on the insure banking project. What makes you so confident about the possibility of involving at least 2,000 professionals, Generali, Italian and Alleanza, and about the fact of this project being successful? Is it the fact that you have already experienced it in a different way through the FPA’s, or are there also other elements that we have to take into consideration? The second question is on the absolute NII guidance. Have I understood correctly? Because I had some problems in connection that you mentioned €310 million for this year. Just a quick confirmation, and then I would like to go in depth on the line of provisions, which is down compared to last year, but I would like to have a breakdown of this item if possible. Thank you.

Gianmaria Mossa, CEO and General Manager, Banca Generali: Thank you. The Incubane project I can answer in two different ways, three different ways. The first one is the first time ever that we launch a strategic plan with Alleanza for direct development solution. Alleanza is a very well performing network and is the natural evolution of a professional, so they have to fully understand the opportunity and to penetrate and increase cross-selling, upselling to existing clients. There are 10,000 and my assumption, very conservative, is that we can involve only 20% of the professionals. It’s something absolutely new. We are very committed and there is a great enthusiasm around this project. The second reason is because, as you know, it is a project already launched by other competitors, as I mentioned before, and the banking industry is entering the insurance business.

It is not only a move to increase profitability, increase penetration, but is also a defensive move to have a different proposition and holistic proposition for the clients. Third, what happened in 2022 was very disruptive because for the first time we start seeing significant outsource and to avoid the repetition of such a kind of extreme scenario. If I were a professional, I would like to have also some alternatives in order at least to capture part of the outflows in case of interest rate. For all these reasons I’m very confident. Second, on the guidance, you are right, we do expect to stay at or above 200 basis points in terms of yield. If you multiply these 200 basis points for the current level of the interest bearing asset, €15.5 billion, you have a level of a number around €310 million.

For the provision I will hand over to Nashville. Let’s say that the provisions are quite stable in the first half compared with the same period of last year. The risk that you see is mainly linked to the provision to the Resolution Fund, the bank which is down basically to zero. This is why we have a benefit in BTNL which is mainly into this. The provisions, let’s say the classical provisions, are very stable and in this provision we have the severance for FA and the normal provision to say risk and charges that we have on a quarterly basis. Very stable and we look also forward, we don’t see a great change in these numbers. We see that the provision for the Resolution Fund will be much lower than last year starting from this year.

Conference Operator, Cosco: The next question is from Luigi Debelli from Equita. Please go ahead.

Hi, good afternoon. I have some questions. The first one is on the recruitment. You mentioned a more complex environment. On the recruitment front, could you elaborate on the main challenges you are facing today? To what extent is this complexity temporary and tied to the recent offer from Mediobanca? If these challenges impacted also the net interest trend? The second question is on performance fees. You mentioned $5.5 billion of assets under management close to high water mark, could you quantify the potential upside to performance fees in the second half if markets will remain supportive? The third question on the NII $310 million for this year. Considering the current interest rate curve and your expected commercial policy, can we assume at least stable NII for next year? Last question on the Intermonte integration. Could you elaborate on the revenue synergies already materializing?

You mentioned the growing interest from entrepreneur clients in exploring the opportunity. Can you elaborate on this and from which banks or channel you are gaining inflows or market share from thanks to the Intermonte integration? Thank you.

Gianmaria Mossa, CEO and General Manager, Banca Generali: Thank you. Let’s start from recruitment. Let’s say that the partnership, say the M and A with Intermonte was a game changer for us. Great interest from several professionals who explored the potentiality of this deal. I see on top of the traditional interest for Banca Generali as the top private bank literally in our space, financial advisors. Now there is also the possibility to provide corporate investment banking services starting from the long-lasting relationship banker and client. This works very well also for recruitment. We have plenty of conversation and interview, but of course temporarily they are asking about the result of the pending exchange public offers, vivid as a committee change. We have also some candidates who need to join despite the situation.

It’s just a small number, so it’s pretty understandable as behavior, and we have some delays also with some clients in the same need to understand exactly the thought of bankers online. Despite this uncertainty, I’m pretty impressed by the number of financial advisors we are meeting and power of bankers. I’m impressed by the interest around Intermonte. This explains why during the conference call I said the integration is working even better. Why even better? We have, let’s say, at least three activities in place. The first one is with entrepreneurs. The feedback from Intermonte is absolutely positive. We have already organized almost 100 meetings. Meeting the client with a financial advisor who knows this client is much easier, and we start seeing plenty of opportunities. This will translate in new inflows as soon as the deal will be closed.

It takes time, of course, it’s like a child, six, nine months at least. We’re going to see next year. The second opportunity is a game changer in the use of derivatives to protect and to internalize margins. We’re going to launch a new set of strategies both in the asset management and in the afternoon Bercando study with the proposition of protection. This is really powerful. Our internal team is building significant new innovative solutions, and we will present this at the next conference, at the next convention with the financial advisors. The third one is internalization of margins, and we are working to internalize part of the margin structure, product and brokerage. This will take place before the end of the year, at least the first part of these synergies, integration, vertical integration of the value chain and for net interest income.

You know, probably it’s too early to give guidance for the next year. The idea is to announce our view when we meet for the strategic plan. I can tell you that I do not expect any reduction in the interest bearing assets. In a positive scenario of asset expansion, I think that the yield will reduce slightly but I do not expect significant negative impact on the overall contribution net interest income.

Thank you.

Conference Operator, Cosco: The next question is from Gianluca Ferrari of Mediobanca. Please go ahead.

Yes.

Hi, good afternoon. A couple on the insure banking project. The first one is on the FAI agent collaboration. I was wondering if you can share with us some ideas on the referral fee or the fee sharing in case sale is done jointly among the two professionals and also linked to Alleanza. It seems to me that Alleanza moved away from Generali savings products since ages now. They are offering a multi-class wrapper. I think they’re also selling the Valore Futuro of Generali.

Gianmaria Mossa, CEO and General Manager, Banca Generali: In case.

What is the incentive for them to switch to the steel esclusivo? Selling your multi class product vis-à-vis that’s provided by Generali. I think you are reaching Alleanza via digital channels. There is not a fee sharing probably with a financial advisor, but it is more with banker generally as an acquisition. Here my question is, is it going to be neutral for an Alleanza professional to sell a Generali multi class insurance product vis-à-vis your product or is there something I’m missing in terms of how they will steer the decision on this point? Thank you.

Let’s say that we have at least a couple of examples. In the market, when you have the full control of both trade agent and financial advisor, you can sign a contract in which you decide to work on both the customer base with a filter of the recurring fees. On one end, the financial advisor works on the customer base of the trade agent, crossing up seven financial space. On the other side, the paid agent posts on the customer base of financial advisors for protection needs. We launched a couple of pilots to see if this kind of model can work even if there isn’t a full control of Generali. We have very good examples in the Italian market working very well on Alleanza side. You have to consider Alleanza as a very well-diversified population, both in terms of professionals and in terms of clients.

When I mention the, let’s say, standardized but in a positive way product, the standard offer, it means that it is a specific offer for protection. As you know, Stile Libero was a great success because it was able to capture the assets invested in single funds for fiscal optimization, operational optimization, much higher diversification, and so forth. The target for this kind of product is slightly different from the target of standard solution in the trading space. There are well-diversified populations. I do expect in the console Valianto affluent and upper-affluent clients, also with other assets with other distributors. Capturing the asset management component with this proposition for me is different than the traditional proposition of standardized unit links, even if the standardized unit link offers protection thanks to the ancillary insurance drivers.

Different propositions, different target of clients, and much higher focus on the best professional, just to have the possibility to provide very high personalized solutions to the final client. I’m sure that this will increase the share of wallet also in the insurance space. Moreover, it will allow the clients with more sophisticated needs to see an answer to this measure. Last but not least, consider that this distribution network successfully moved from traditional unit rules to protection. With excellent numbers, they know how to expand the offer and the proposition to clients, well steered this network and strategic interest in broadening the offer. I’m pretty confident that it will be a success.

Very complementary with what they already have in the product range.

Exactly. Exactly.

Thank you, Gianmaria.

Conference Operator, Cosco: For any further questions, please press Star M1 on your telephone. Mr. Mossa, there are no more questions registered at this time.

Gianmaria Mossa, CEO and General Manager, Banca Generali: Thank you for attending our conference call. We remain a few disclosures for any Q&A and goodbye.

Conference Operator, Cosco: Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones. Thank you.

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