Generali has reached an agreement for the sale of its Irish and Northern Irish P&C operations, carried out through the Irish and UK (Northern Ireland) branches of Generali Spain under the RedClick brand, to Zurich Insurance Europe AG and Zurich Insurance Company Ltd, UK Branch, both part of the Zurich Insurance Group, for €337 million in cash.
Generali noted that the transaction aligns with its focus on core insurance markets, where it already has significant scale and a leading presence, and complements its ‘Lifetime Partner 27: Driving Excellence’ strategic plan.
According to the firm, the sale should generate a capital gain, to be finalised upon completion.
It is also projected to have a negligible impact on Generali’s adjusted EPS and an estimated positive contribution of around 1 percentage point to the Group’s Solvency II ratio.
Generali Spain will reportedly retain an additional €51 million of excess capital that is currently allocated to the relevant Irish P&C operations.
BofA Securities acted as sole financial advisor to Generali for the deal, while Clifford Chance LLP and A&L Goodbody LLP acted as legal advisors.
