For his third three-year plan, Donnet needed to be bolder. Italian billionaires Francesco Gaetano Caltagirone and Leonardo Del Vecchio, who control nearly 16% of the 29 billion euro insurer’s stock along with a smaller ally, have already signalled they want him out. While he has the backing of top shareholder Mediobanca (MDBI.MI), which owns 13% of the group’s shares but has borrowed enough to control 17% of its votes, he also needs other investors to support him at a meeting in April.

That may be why Donnet is now promising to grow earnings per share by between 6% and 8% each year through 2024, ahead of German rival Allianz (ALVG.DE), which is targeting a 5% to 7% boost over the same period. He also unveiled a 500 million euro share buyback plan, the group’s first in 15 years, and pledged to return 6.1 billion euros in total to shareholders read more , about a third more than in the 2018 to 2021 period.

The new plan should help Generali’s stock. If Donnet hits the upper end of his targets, earnings per share would reach 2.3 euros in 2024. Put that on the group’s 2024 price earnings multiple of 9, and the insurer’s shares should be worth nearly 20.5 euros each, some 10% more than the current price.

There is reason to believe Donnet can deliver. The insurance executive, at the helm since 2016, has successfully pushed through a turnaround that included disposals and cutting debt. Since he became CEO, Generali has delivered a total return of 111% to investors, ahead of 66% for Allianz and 45% for Axa (AXAF.PA), Refinitiv data shows.

Donnet did not win the support of Caltagirone and Del Vecchio for his strategy at a board meeting on Tuesday. Their own plans for the insurer aren’t clear, although Del Vecchio has said he would like the group to play a greater role in the global insurance landscape, implying perhaps a large takeover. They may yet propose a new chief executive with an alternative vision. That would also involve risk. For now, Donnet may have done enough to persuade Generali’s other investors to stick with what they know best.

Source: Reuters