MILAN (Reuters) -The stake in insurer Generali held by the banking group born from Monte dei Paschi di Siena’s acquisition of Mediobanca provides a welcome source of revenue diversification, MPS Chief Executive Luigi Lovaglio said.
Speaking at a parliamentary hearing, Lovaglio said that while diversification was always a good thing, the stake in Generali had, like all investments, to provide an adequate return adjusted for risk and the amount of bank capital tied up against it.
The Generali stake could also provide an additional option in terms of bank-insurance partnerships, Lovaglio said, adding the new group would manage the stake based on “industrial logic” and “financial opportunity”.
(Reporting by Valentina ZaEditing by Keith Weir)
