Assicurazioni Generali SpA has completed the sale of its entire shareholding in its Ireland-based subsidiary, Generali PanEurope, to Life Company Consolidation Group (LCCG).
Generali says the terms of the sale are in line with the transaction’s original announcement in December 2017, when it was revealed that Generali had agreed to accept an initial consideration of €230 million, in addition to a €56 million settlement for certain intercompany financing arrangements.
Generali PanEurope contributed approximately €20 million to the Group’s operating results in 2016, and its sale is expected to add 0.4 percentage points to Generali’s Regulatory Solvency II ratio, as well as generating a post-tax gain of approximately €56 million.
Following the sale, the Group will remain active in the Irish market through its Global Business Lines division, while the former Generali PanEurope dac will continue to act as the Irish and PanEuropean partner of Generali for the corporate employee benefit business to serve existing and future clients.
LCCG said the acquisition was in line with its strategy to optimise its geographical footprint, increase operational efficiency, and improve capital allocation.
The completion of its acquisition of Generali PanEurope also follows the announcement of LCCG’s plans to acquire the in run-off business of The Equitable Life Assurance Society via its specialist UK run-off manager Reliance Life Limited.