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TRIESTE, Italy (Reuters)—Shares in Assicurazioni Generali S.p.A. rose sharply on Monday as investors welcomed a management revamp at Europe's No.3 insurer as well as comments by its new chairman who ruled out plans for a capital hike.
On Saturday, Generali appointed veteran banker Cesare Geronzi as its chairman and three vice chairmen, a move which analysts said makes the company's governance more balanced.
"A more simplified and linear governance, along with good premium data, can be seen as a solid base for a consolidation of positive results and opens the way to a future growth," Banca IMI analyst Sergio Ciaramella said in a report on Monday.
At a news conference following his appointment, Mr. Geronzi said there had never been any concrete plan for a capital increase at Generali. Mr. Geronzi leaves the position of chairman at investment bank Mediobanca S.p.A., Generali's largest shareholder.
By 1124 GMT, Generali was up 1.9% percent at €17.04 ($22.79), beating the STOXX insurance index, which was about 1% higher.
Unlike his predecessor, Antoine Bernheim, Mr. Geronzi will have a nonexecutive role and be flanked by three vice chairmen: Mediobanca CEO Alberto Nagel, Mediobanca shareholder Vincent Bollore and Rome businessman Francesco Gaetano Caltagirone.
The unexpected appointment of Mr. Caltagirone, whose family owns cement maker Cementir, was part of efforts to give major private shareholders a bigger say in the running of Generali and counterweight Mediobanca's influence.