Generali has done an impressive job of refocusing its business and strengthening its balance sheet post-financial crisis and is strong enough to remain independent, Twelve Capital's insurance specialist told CNBC's Squawk Box on Wednesday.
Rumors hitting the media late Monday that Intesa Sanpaolo was considering making an offer in conjunction with German insurer Allianz were confirmed by a press release issued by the Italian bank after markets closed on Tuesday. The statement said that management was examining a range of growth options, "including possible industrial combinations with Assicurazioni Generali".
The announcement followed Generali's pre-emptive move on Tuesday to block a deal by buying a 3 percent stake in Intesa Sanpaolo.
"I don't think it needs to do a deal," argued Marcus Rivaldi,head of insurance credit and equity analytics at Twelve Capital.
"Unfortunately the share price does seem to struggle from time to time given movements in market perceptions around Italian risk but fundamentally the business is strong," he continued.