SPA plans to increase its holdings of real estate and asset management

Assicurazioni Generali SpA, the third largest insurance company in Europe, plans to increase its holdings of real estate and asset management to promote the Central and Eastern Europe and Asia to increase profitability.

The insurer seeks to expand its real estate portfolio of 30 billion euros (40 billion U.S. dollars) "medium term" of 24.2 million euros at 30 September, Trieste, Italy-based company said in a statement.

"Generali focus new investments not only to take the market cycle in European countries, but also to diversify the portfolio in areas that offer attractive yields, as the U.S.," Generali said in a statement. "In China, will begin to invest the resources generated locally by the insurance company."

Generali aims to boost its assets under management in Asia, focusing on China and Central and Eastern Europe "to increase support for their local operations." In China, the Hong Kong joint venture with Guotai AMC will begin operations in early 2011, Generali said.

CEO Giovanni Perissinotto, who led the purchase of 30 percent of China Guotai Asset manager last year, is looking to expand in emerging markets and Eastern Europe to increase profitability following the global financial crisis.

Generali aims to triple the assets under management in Asia through its banking unit BSI private, profit 15 billion U.S. dollars of assets under management in 2013 from the current $ 5 billion, Perissinotto, said during a speech on the day of investor in the company today in Venice. They also plan to hire employees in Hong Kong to promote the entry.

The insurer declined to 3.2 percent in Milan trading, and fell 36 cents to € 14.10 by 13:38, giving the company a market value of around 22 million euros. The Europe 500 Insurance Index fell 3.4 percent this year compared with a decrease of 25 percent of Generali.

third-quarter earnings of Generali rose 13 percent to 440 million euros as revenue in its life insurance unit rose, the company said on 11 November. Generali reiterated that it expects to report higher operating margins for the year and an increase in net income compared to 2009.