Italian insurer Generali has entered into an agreement with Reinsurance Group of America (RGA) for the sale of the life run-off portfolio of its UK branch.
As part of the transaction, Generali has signed a reinsurance contract that will cover all claims payments arising from most of the legacy business, with the remaining portion transferred directly to the counterparty.
Generali disclosed that the portfolio in question consists mainly of annuity business.
The company also explained that the deal is expected to strengthen its capital position, with an estimated increase of around 1 percentage point on the Group Regulatory Solvency Ratio, and allow it to concentrate on the core business.
“Thanks to the sale of this run-off portfolio, we are going to release resources that we can reinvest in new opportunities,” said Cristiano Borean, Generali Group’s Chief Financial Officer.”
“The operation also further improves the operating efficiency of our UK Branch,” he added.
The portfolio transfer of the whole book of business will take place once approval from the necessary authorities has been obtained.