Generali to exit weaker markets

Generali is looking to raise at least EUR1 billion (USD1.06 billion) by selling businesses in unattractive markets and is to cut costs in an effort to boost profit and capital.

Reiterating 2018 targets on Wednesday, Generali said it is reviewing its presence in 13-15 countries and aims to cut operating costs in mature markets by EUR200 million over the 2016-19 period.

European insurers got a boost this month from rising bond yields triggered by Donald Trump’s victory in the U.S. presidential elections. But uncertainty over a referendum that could unseat prime minister Matteo Renzi is weighing on Italian shares.

“If yields go up and the spread (between Italian and German 10-year bonds) doesn’t widen too much we are much better off,” said chief financial officer Alberto Minali.