Generali has signed an agreement for the sale of the Non-Life run-off portfolio of its English branch, with liabilities of around 300 million, with Compre Group, one of the main companies specializing in run-off activities in the insurance sector.
“This operation, which has met with high interest from the market – commented Luigi Lubelli, group CFO of Generali – constitutes a further step towards our commitment to improve the allocation of the Group's capital. It also allows you to free up capital, reduce costs and eliminate a potential source of volatility inherent in long-term liabilities. This transaction demonstrates how the group is committed to reallocating its capital where it can be best used, beyond the current reorganization of its presence in global markets”.
According to Frédéric de Courtois, group CEO Global Business Lines & International, “this agreement contributes to further improve Generali's operational efficiency. The group is engaged in the UK market with Generali Global Corporate & Commercial, which manages P&C activities and insurance services for medium-large companies; with Generali Global Health, which has its headquarters in London; and our UK Employee Benefits business, part of the Generali Employee Benefit network, which provides insurance coverage to employees from medium-sized companies up to large multinationals.
At this stage, the Lion has entered into a reinsurance contract to cover the payment of all claims arising from the previously stipulated business, which will be legally followed by the transfer of the portfolio subject to the approval of the authorities. As part of this transaction, the group also signed a reinsurance agreement with the same counterparty for the run-off Non-Life portfolio of its American branch.
