Cattolica Insurance concluded the acquisition of 40% of Catholic Life laid down by the Popular Bank of Vicenza, a company subject to compulsory administrative liquidation. Soon after, the Veronese company has sold 100% of the same subsidiary to the Monument Re reinsurance group. He communicates it in a note Cattolica Assicurazioni, specifying that the operation was closed with the green light "from the competent authorities".
The sale of Cattolica Life "is part of the broader context of rationalization and simplification of the Cattolica Group - reads the press release - and it has no material effect on the Solvency II ratio".
As part of the transaction, NatWest Markets acted as financial advisor on behalf of the Cattolica Group, while the Gianni Origoni, Grippo & Partners firm assisted the insurance company for the legal aspects.
The sale of Cattolica Life had been announced to the market on December 11, 2019. "The impact on net income of the group, including the result for the 2019 financial year - the group specified in the first communication - can currently be estimated at a loss of just over 5 million, almost entirely charged to the current year and will allow an increase in the operating result of approximately 4 million per year in the coming years, thanks to cost savings".
Catholic Life is an insurance company with headquarters in Dublin and assets of approximately 200 million. It had been set up as a joint venture in the context of the commercial partnership with Banca Popolare di Vicenza.
Last week the Institute for Insurance Supervision (Ivass) had asked Cattolica to strengthen its equity with a capital increase of 500 million to be launched by 30 September. On Monday, the board of directors of the group released another note to announce that it has "instructed the management to prepare a plan within the required time frame, in order to strengthen the solvency of the group". The operation will be approved by the shareholders' meeting on 26/27 June and its amount is equal to approximately two thirds of the current capitalization of the group.
