Assicurazioni Generali SpA dropped to the lowest since July 2013 after Chief Executive Officer Mario Greco said he was leaving the Italian insurer to head Zurich Insurance Group AG.
Generali, which has yet to announce a replacement, closed 1.3 percent lower at 13.96 euros in Milan, valuing the company at 21.7 billion euros ($23.6 billion). The stock has dropped 14 percent this year. Zurich shares gained 1.5 percent Wednesday.
Greco, 56, quit after telling Generali’s board that he was unable to reach an agreement with shareholders on his future role after months of discussions, according to a letter seen by Bloomberg. The company needs certainty to meet its targets, and the conditions for Greco to stay on weren’t there, he said. He won’t stand for another term as CEO when his tenure ends with an April 28 shareholder meeting.
Greco is returning to Zurich Insurance about three years after he left to join Trieste, Italy-based Generali, and is taking over as the Swiss company’s CEO following the departure of Martin Senn in December. Senn stepped down after Zurich posted a loss in general insurance, its biggest unit, and abandoned a takeover bid for RSA Insurance Group Plc.
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