(Recasts with source, background)
MILAN, March 17 (Reuters) - Italy's top insurer Generali
is considering an acquisition in Russia worth about 2
billion euros ($2.4 billion), although the project is still at a
very early stage, a source close to the situation said on
Wednesday, confirming a press report.
A plan presented by Chief Executive Philippe Donnet to the
insurer's investment committee listed as potential targets
insurers VTB Insurance, Rosgosstrakh and RESO-Garantia
, the source said.
The committee, which is chaired by Donnet and is composed of
representatives of Generali's major shareholders, expressed
concerns about the country risk linked to Russia and asked for
further details, the source added.
Generali declined to comment. The group already has a
presence in Russia via a 38.5% stake in one of Russia's largest
insurers Ingosstrakh which it has held since 2013.
Italian newspaper Il Sole 24 Ore, which first reported the
news, said Generali is looking at a Russian company active
mainly in the non-life business, and that RESO-Garantia is the
most likely candidate.
Donnet, whose mandate as CEO comes up for renewal next year,
has come under pressure from key shareholders Leonardo Del
Vecchio and Francesco Gaetano Caltagirone, who want Generali to
grow further.
Del Vecchio, the 85-year-old founder of spectacles giant
Luxottica, is also the largest shareholder of Mediobanca
, which in turn is the biggest investor in Generali.
Donnet said earlier this month the company had more than 2
billion euros for M&A and would look at opportunities with
discipline.
He added that Central and Eastern European countries are
strategic to Generali. "If we can find good opportunities to
further strengthen our leadership position there, we will
definitely do it, remaining very disciplined," he told analysts
in a post-results call last week.
Generali, the Dutch insurer NN Group and Germany's
Allianz are vying for Aviva's Polish operations worth
about 2 billion euros, sources familiar with the matter said
last month.
($1 = 0.8404 euros)
(Reporting by Gianluca Semeraro, Valentina Za and Maria Pia
Quaglia; Editing by Jan Harvey)
Aviva (AV.)
