Italy’s resilient savers are driving consolidation in asset management

THE rumour mill is grinding again. In early 2017 reports swirled of a possible merger between Generali, Italy’s biggest insurer, and Intesa Sanpaolo, the country’s second-biggest bank. That deal came to nothing. But Intesa is still looking for a partner. Now it is said to be in talks with BlackRock, the world’s biggest asset manager, about a stake in Eurizon, the bank’s asset-management unit. Deal or no deal, two things are clear. Italy’s asset-management industry is consolidating. And though investors fret over a populist government and towering public debt, its pool of private savings will keep them keen.

Last year Amundi, a French asset manager, bought Pioneer, the fund-management arm of UniCredit, Italy’s biggest bank. Over half of assets under management are owned by 10% of Italians, which makes the wealthier end of the business especially appealing. Mediobanca, an investment bank, last year opened a private bank and bought 69% of RAM Active Investments, a Swiss investment manager. And in May Indosuez, the wealth-management arm of Crédit Agricole, a French bank, acquired Leonardo, a private bank.

There is lots to fight for. Although Italy’s savings rate has fallen by more than half since the 1990s, at 10% of personal income it still beats Britain’s or Spain’s. The financial crisis a decade ago saw assets under management contract by...Continue reading

from Business and finance https://www.economist.com/news/finance-and-economics/21745270-intesa-sanpaolo-said-be-talks-blackrock-worlds-biggest-asset?fsrc=rss