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Generali sells Tua Assicurazioni to Allianz for 280 million. The Solvency Ratio increased by one point

Tua is focused on the non-life business in the Italian market and operates mainly in the auto sector, which represents approximately 60%. Generali had inherited it from the takeover bid made on Cattolica Assicurazioni.

Generali sells Tua Assicurazioni to Allianz for 280 million. The Solvency Ratio increased by one point

Generali has reached an agreement for the sale of TUA Assicurazioni to Allianz Milan for a consideration of 280 million euros in cash. Allianz's offer was deemed better than that of the other suitors competing (Groupama, Talanx and Hdi) who had come forward for the company, which has a premium portfolio of around 280 million.

On Piazza Affari this morning the Generali stock was trading at 19,23 euros, up by 0,026%

For Generali the Solvency Ratio increased by one point

The Trieste insurance company had inherited Your Insurance from the takeover bid carried out on Cattolica Insurance and with its sale it increases the Group's Solvency Ratio by approximately 1 percentage point, while it will have a negligible impact on the EPS. Tua Assicurazioni, focused on damage business in the Italian market, it mainly operates in auto sector, which represents approximately 60% of the total premiums issued in 2022, through a distribution network made up of almost 500 agents and intermediaries without mandate constraints. The operation, says a note from Generali, is in line with the implementation in Italy of the Group's strategic plan, “Lifetime Partner 24: Driving Growth”, which envisages pursuing profitable growth, reducing complexity with the aim of make the operating machine more efficient and increase the diversification of the Non-Life segment.

Allianz expected to increase market share to 11% with Tua

With this operation the market share of Allianz in the Non-Life insurance market it is expected to grow by approximately 1 percentage point reach 11%, consolidating its position as third player in Italy. “With a strong focus on customer centricity and distribution excellence, Allianz will ensure a smooth transition for customers, employees and agents, while realizing economies of scale,” the company says. “The acquisition of Tua Assicurazioni is part of a long-term strategy that aims to grow in the Non-Life classes with a special focus on retail customers and SMEs,” he declared Giacomo Campora, CEO of Allianz spa, “We are certain that new agents and their customers will discover a complete product range, a cutting-edge technical platform and a notable desire to grow professionally. From 2014 to 2022 colleagues and agents from Milan, Sasa and Aviva brought skills and new ideas. A success that we are certain will continue with Tua. Allianz, builders of certainties”.

The completion of the transaction, subject to adjustments in line with market practice for this type of transaction, is expected by first quarter of 2024. For the operation, Mediobanca and Rothschild & Co acted as financial advisors and the law firm Gianni & Origoni acted as legal advisor.

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