Assicurazioni Generali SpA said Chief Executive Officer Mario Greco doesn’t plan to serve another term at Italy’s biggest insurer.
Greco is willing to continue in his role until the end of his contract, Generali said in a stock exchange statement on Tuesday. The company will convene a board meeting "soon," Generali said.
Greco, 56, is in talks to become CEO at Zurich Insurance Group AG, replacing Martin Senn, a person with knowledge of the matter who declined to be identified said earlier Tuesday.
Generali’s shares dropped as much as 5 percent and closed 3.2 percent lower at 14.15 euros, the lowest since July 2013, in Milan trading. Zurich’s shares rose 0.6 percent to 221.80 Swiss francs, valuing the insurer at 33.4 billion francs ($32.8 billion).
Greco would be returning to the company that employed him for five years before joining Generali. His experience at Zurich includes stints heading up global life as well as the non-life unit.
Senn left the company last year after the Swiss insurer’s non-life unit posted a third-quarter loss that forced the company to abandon a takeover bid for RSA Insurance Group Plc.
Its troubles deepened later in December when three storms pummeled parts of England, Scotland and Ireland. Thousands of homes were flooded, leading the company to warn shareholders last week that it expects a second straight quarterly loss in general insurance.