(Reuters) — Philippe Donnet kept his job as CEO of Italian insurer Generali on Friday, surviving a challenge from a group of rebel domestic investors thanks to strong support from institutional shareholders.

The vote at the company's annual general meeting ended months of bitter infighting at the heart of Europe's third-largest insurer but leaves a question mark over whether the main challengers will hang on to their combined 20% stake.

The company's board nominees, backed by leading shareholder Mediobanca, gained the support of 56% of shareholders who voted at the meeting, compared with 42% for a rival slate nominated by investor Francesco Gaetano Caltagirone.

However, Mr. Caltagirone's share of the vote was enough to ensure his list would be allocated three seats on the 13-member Generali board, potentially making life uncomfortable for Mr. Donnet, who has been in charge since 2016.

Mr. Caltagirone, a construction and media entrepreneur, will be in line to take one of the places because his was the first name on the slate put forward by his group.

He had quit the board in January, and his camp has been pushing for Generali to set more ambitious growth targets and to step up its deal-making activity.

Speaking after the vote, which was held remotely because of COVID-19 protocols, Mr. Donnet made a call for unity.

“The unambiguous choice of a majority of shareholders is proof of the confidence they have in our management team and strategic plan,” he said.

“Now we'll all work together in one direction with the board, management and our network of agents ... to pursue the interest of all stakeholders and the success of our group.”

Mr. Caltagirone and fellow billionaire investor Leonardo Del Vecchio had opposed the list of executives proposed by the Generali board. 

Mr. Caltagirone had nominated former Generali executive Luciano Cirina as a replacement for Mr. Donnet and former Goldman Sachs banker Claudio Costamagna as chairman alongside Mr. Cirina.

Mr. Cirina and Mr. Costamagna had dubbed their program “Awakening the Lion,” a reference to Generali's nickname “The Lion of Trieste.”

They wanted to spend as much as €7 billion ($7.4 billion) on mergers and acquisitions, compared with the existing board's plan for €3 billion, and have also targeted annual earnings growth of more than 14%, with heavy cost cuts and acquisitions.