MILAN (Reuters) - Italian insurance regulator IVASS has asked Generali (GASI.MI) to carry out a new assessment of actions by two former top executives to see whether there is a case for legal action, Generali said in a statement on Wednesday.
Long-term former CEO Giovanni Perissinotto was ousted after clashing in mid-2012 with investors frustrated over the group’s underperformance. He has been replaced by Mario Greco.
Generali, Italy’s biggest insurer, has already conducted an internal review of private equity and hedge fund investments carried out under Perissinotto and former CFO Raffaele Agrusti, but it concluded there was no ground for legal action or damages.
IVASS also said Generali should use the results of the new investigation to assess the fairness of severance packages awarded to the two managers.
In its statement, Generali disclosed that Agrusti’s severance package, whose details had not been fully disclosed to the market, would cost the insurer a total of 6.1 million euros ($8.25 million).
($1 = 0.7392 euros)
(Corrects spelling of names of managers and Italian regulator, which were altered by spell check)
Reporting by Lisa Jucca; Editing by Stephen Jewkes and Anthony Barker