Mediobanca awaits clarification on new law before deciding on Generali board list

Italy's Mediobanca is waiting for clarification on a new Italian law before deciding whether to present a list of candidates for the board of insurer Generali at its annual shareholder meeting in April, a source close to the matter said.

Law Decree 3/2023, approved by the Italian government on Jan. 23, aims to accelerate investments in renewable energy and provide clarity on how companies apply environmental, social and governance (ESG) criteria, the source said.

Mediobanca is Generali's biggest investor with a 13% stake, and had been expected to present a slate of candidates for Generali's board at the Italian insurer's April AGM.

However, the Italian bank is now waiting for clarification on whether the new law will apply to Generali, the source said.

The source said Mediobanca wanted to ensure that if it presented a list, it would be compliant with the new law.

Mediobanca declined to comment.

Generali and the Italian Treasury, which owns 6.5% of the Italian insurer, declined to comment

The new law includes measures to promote the participation of women and young people on the boards of directors of listed companies, among other changes.

The law also introduces new rules on the composition of nomination committees and the appointment of independent directors.

Mediobanca has been a vocal critic of Generali's management in recent months, calling for a change in strategy and the appointment of new board members.

In December, Mediobanca CEO Alberto Nagel said the bank was "not satisfied" with Generali's performance and wanted to see "a change of pace".

Generali CEO Philippe Donnet has defended his record, saying the insurer has delivered strong results in recent years.

The AGM will be a key moment for Generali, as shareholders will vote on the company's strategy and the composition of its board.

Mediobanca's decision on whether to present a list of candidates will be closely watched by investors.