Italian insurance giant Generali has entered into an agreement to sell its entire shareholding in Generali Worldwide Insurance Company Limited and Generali Link, to Life Company Consolidation Group (LCCG).
The transactions are part of Generali Group’s strategy to improve its operational efficiency, alongside improved capital allocation and to optimise its geographical footprint.
Generali Worldwide is domiciled in Guernsey and specialises in providing life-insurance-based wealth management and employee benefit solutions globally, across a number of territories where it is licensed. Generali Group will retain the health portfolio of Generali Worldwide in the Caribbean, which will be managed by the Group’s global health unit.
Generali Link is domiciled in Ireland and was launched as a shared service provider, with a focus on Fund and Policy Administration. Generali Link provides services to Generali Worldwide and also Generali PanEurope dac, which was acquired by LCCG in 2017 and renamed Utmost PanEurope dac.
Generali Group will receive roughly €409 million in base consideration, as well as additionally up to €10 million of contingent consideration to be paid at completion, for the sale of stakes in the two companies that remain subject to certain customary adjustments following closing of the transaction in line with market practice, explains the insurer.
Frédéric de Courtois, Group Chief Executive Officer (CEO), Global Business Lines & International, said: “This agreement affirms our ongoing efforts to optimize the Generali’s geographical presence across the globe within this year. With a total value of the deals over €1.5 billion, significantly above the initial target of €1 billion, Generali reaffirms its ability to successfully pursue the targets of its strategic plan.”
Generali Group states that the transaction will lead to a positive impact on its Solvency position by adding about 0.9 percentage points to the Group’s Regulatory Solvency II ratio.
The deal is expected to close in the first-quarter of 2019, and remains subject to approval of the relevant competition and regulatory authorities.