The Generali Group has announced an agreement to sell its entire 98.56% stake in Generali Nederland N.V.(Generali Nederland) and its subsidiaries, to insurance group ASR Nederland.
As part of the transaction, Generali will receive an initial consideration of €143 million, which is subject to certain customary adjustments after the deal has closed.
Furthermore, under the agreement, Generali will stop providing any reinsurance to Generali Nederland’s subsidiaries, which results in the withdrawal by Dutch life insurer of the reinsured portfolio with Assicurazioni Generali S.p.A..
According to a statement, the contribution of the Dutch operations to the Group’s result was limited and equal to roughly €9 million, in 2016.
Generali expects the deal to have a positive impact on its Solvency position, stating that it will add 1.6% to the Group’s Regulatory Solvency II, and will result in a one-off net loss of around €270 million.
Frédéric de Courtois, Group Chief Executive Officer (CEO), Global Business Lines & International, commented; “With this transaction we reaffirm our commitment to the rebalancing of Generali Group’s geographical presence across the world. After the closing in Guatemala and the recent agreement to dispose our operations in Colombia and Panama, this transaction represents a significant step to pursue the strategy announced during our last Investor Day.
“We are well on track in executing our strategy and we are confident to generate at least € 1 billion of cash.”
The deal is expected to be closed in the first-half of next year, and remains subject to inter alia, the approval of the relevant competition and regulatory authorities, explained Generali.
