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
Monte dei Paschi CEO Highlights Generali Stake as Revenue Diversification
Revenue Diversification through Generali Stake
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.
Importance of Diversification
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.
Bank-Insurance Partnership Opportunities
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)
