Generali Group has committed to becoming a major shareholder of Cattolica Group through a reserved share capital increase for €300 million, as the pair announce the launch of a new strategic partnership.
The Board of Directors of both companies recently approved the launch of a strategic partnership between the pair, which will be based on industrial and commercial agreements, a share capital increase, and a new legal structure and governance.
The strategic partnership envisages four business and commercial initiatives that represent important profitable growth opportunities in services for customers in both the P&C sector and the asset management space. By leveraging Generali’s skills and experience in investment management, digital innovation and health services, Cattolica will be able to expand and improve its offering.
Specifically, the agreements, which have a multi-year duration, provide for asset management, Internet of Things, health business, and reinsurance.
The second pillar of the strategic partnership concerns a share capital increase, with Generali’s commitment to subscribe a share capital increase, without option rights, for €300 million, subject to the approval of the transformation into a joint-stock company. Following this subscription, Generali would become a major shareholder in the firm with a 24.4% stake, and will also have the option to subscribe to the subsequent capital increase, for an additional maximum amount of €200 million.
Concerning legal structure and governance, the agreement requires Cattolica’s transformation from a cooperative entity to a joint-stock company, effective April 1st, 2021 and also the adoption of statutory amendments to protect the investment as binding conditions for Generali becoming a major shareholder in the company.
Country Manager & Chief Executive Officer (CEO) of Generali Italia and Global Business Lines, Marco Sesana, commented: “The strategic partnership with Cattolica represents a unique opportunity currently in Italy for profitable growth in asset management and innovative services for P&C customer services, pillars of our 2021 Life-time Partner strategy.
“This allows us to extend our health and telematic services to the more than 3.5 million Cattolica customers, thanks to the innovative platforms of Generali Welion and Generali Jeniot. Becoming a major shareholder represents an opportunity to be part of Cattolica’s financial strengthening and its transformation into a joint-stock company.”
Paolo Bedoni, Chairman of Cattolica, and Carlo Ferraresi, General Manager, said: “The strategic partnership with the Generali Group represents an important project in Cattolica’s history which, with the objective of maintaining the focus on local territories, customers and employees, offers an important opportunity to create value for members and shareholders.
“Through this agreement, the Cattolica Group will provide benefits for its customers in terms of new and innovative services from the Generali Group, and will be able to reinforce its capital position.”