Assicurazioni Generali downgraded to Hold by Jefferies

Jefferies has downgraded Assicurazioni Generali from ‘Buy’ to ‘Hold’, citing high valuations following a significant period of growth. While analyst Philip Kett raised the price target from 28.50 euros to 38.00 euros, he noted that the insurer has transitioned from a laggard to a leader in the sector, leaving limited room for further upward movement at current levels.

Since the beginning of 2024, Generali’s share price has risen by 123 percent, significantly outperforming the SXIP industry index. Despite the downgrade, Jefferies remains positive regarding the company’s strategic direction and business dynamics.

Internally, Generali’s board is considering the integration of its subsidiary, Alleanza Assicurazioni, into Generali Italia. This move would incorporate approximately 10,000 advisors and 1.9 million customers, representing a premium volume of 11.5 billion euros. However, reports suggest the merger plan faces some internal opposition within the leadership.