Generali names Geronzi chairman, replacing Bernheim

Assicurazioni Generali SpA, the largest Italian insurer, named Cesare Geronzi, the outgoing chairman of its largest shareholder, Mediobanca SpA, as its new chairman and Giovanni Perissinotto as its sole Chief Executive.

Geronzi, 75, replaces 85-year-old Antoine Bernheim, who was named honorary president at Generali’s annual meeting today in Trieste, Italy. Perissinotto’s former co-CEO, Sergio Balbinot, now will lead the company’s international insurance units. “We expect the effect of the Geronzi’s appointment to be negative for the shares,” Fabrizio Croce, a Zurich-based analyst with Kepler Capital Markets SA with a “hold” rating on the stock, wrote in a note yesterday. “Investment funds, Anglo- Saxon investors and ethical funds could have a potential issue with the appointment and may reduce their positions.” Some investors are concerned with the influence Milan-based Mediobanca, Italy’s biggest investment bank, has over the insurer. Geronzi today said Generali doesn’t plan a capital increase, which might dilute Mediobanca’s 14 per cent stake. He also ruled out a merger with Mediobanca. Still, the decision to make Perissinotto, 56, the company’s single chief executive “will satisfy investors worried by Mediobanca’s strength on the board,” Edoardo Liuni an analyst at NuovoMercato.it said in a phone interview today. “Perissinotto will ensure independent leadership at the insurer.”