Published by Global Banking & Finance Review®
Posted on October 9, 2025
1 min readLast updated: January 21, 2026
Monte dei Paschi CEO Luigi Lovaglio highlights the Generali stake as a key source of revenue diversification, offering potential for bank-insurance partnerships.
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.
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.
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)
Revenue diversification refers to the strategy of a company to increase its income sources by expanding into new markets or products, thereby reducing reliance on a single revenue stream.
An investment return is the gain or loss made on an investment relative to the amount of money invested, often expressed as a percentage.
Risk management in finance involves identifying, assessing, and prioritizing financial risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events.
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