Exor is continuing to reconfigure its asset portfolio. This portfolio is still dominated by the three holdings of the former Fiat empire: Ferrari, Stellantis and CNH, accounting for three quarters of the gross asset value.

The highlight of the year was the EUR 8.6 billion sale of the reinsurer PartnerRe to the French mutual group Covéa. These funds are being redeployed to new, more profitable investments, for example in the healthcare sector with the acquisition of a 10% stake in Institut Mérieux.

Exor's market capitalization has been discounting its reported net asset value for years, typically by 30% to 40%, which is more than the discounts of European family holdings such as FFP or GBL.

Was the market ahead of the game here? In 2022, the said net asset value decreased by 7.6%, penalized mainly by the - slight - underperformance of the three major listed holdings. Is this just a cyclical effect? Not sure: Ferrari is valued at its historical highs, while Stellantis and CNH remain highly exposed to the risk of recession.

New investments represent only 5% of assets, and cash 20%: as it stands, Exor remains a bet concentrated on the restructured Fiat empire, and it is true that it is singularly embellished. The transformation will therefore take time. This deserves a discount, and the market has not been deceived so far.

Despite the EUR 500 million that has been earmarked for this by 2022 - i.e. 6% of the proceeds from the sale of PartnerRe - one may be surprised at the lack of enthusiasm that the group is putting into buying back its own shares, when it is communicating with such abandon about the discount in its market capitalization.

It may not look good, but the family and John Elkann intend to devote their resources to diversifying the asset portfolio rather than increasing their concentration in the former Fiat empire.