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A Greek compromise deal not helpful: Generali CEO

Generali CEO: Greek risks still there

The euro zone is getting better, but uncertainty regarding Greece will continue for at least a few more weeks, the CEO of Europe's third-largest insurer, Generali, said Wednesday.

"I think they will come with a solution in next days or weeks. Likely this solution will be further compromise and will postpone the issues to later on and this will buy further time," CEO Mario Greco said in an interview with CNBC's "Closing Bell."

"At the end of the day, there are structural issues there which need to be resolved, and a compromise is not very helpful."

On Wednesday, Greece's international creditors signaled they were ready to compromise with the debt-stricken nation to avert a default even as Athens warned it might skip an IMF loan repayment due this week.

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The markets expect a Greek solution, Greco said, and the uncertainty will continue to make it fluctuate.

Doing business in Europe

Meanwhile, historically low interest rates in Europe mean Generali has to quickly transform its business so that it can make profits, Greco said

First, the cost basis needs to be reduced, he noted.

"Then you need to transform the product portfolio and sell customers products which are the right one in low income environment. So these are typically fee-based products."

He called the transformation "doable."

"We have been growing our profits quarter by quarter last year and we started off really strongly in Q1 this year but it's a business transformation."

He expects the low-interest rate environment to remain in place for at least the next two to three years.

On Wednesday, European Central Bank President Mario Draghi said the central bank was not even discussing an exit strategy for its bond-buying program.

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—Reuters contributed to this report.