Generali is attempting a qualitative leap in Spain, one of the European markets where it is present but not yet so strongly. In fact, the winged Lion aims to become an insurance partner of BBVA, the second largest bank in the country as well as an important window on the Latin American market, given that the agreement will also pave the way for a joint venture in Mexico (while Argentina, Colombia and Peru are currently excluded). To close the strategic agreement of bancassurance, worth 1,5/2 billion euros, Generali still has to make the final push to overcome the competition from Allianz, which is also in talks with the Basque bank.
The tender opened by BBVA, launched in recent months, has Bank of America as advisor. For Generali it would be another important coup achieved in the Iberian peninsula, after the recent acquisition in neighboring Portugal of Seguradoras Unidas (also known as Tranquilidade), number two in the P&C segment in the Portuguese country. Generals is present in Spain since 1834 where it operates with the wholly owned subsidiary and through two bancassurance agreements with Cajamar (Vita and Non-Life). The group led by Philippe Donnet is eighth in terms of total premiums, sixth in P&C, and has launched a digitization strategy.
Investors for now approve, albeit tepidly, the news reported by the newspapers over the weekend: mid-afternoon Generali stock gains on the Stock Exchange about half a percentage point, at 16,2 euros per share.
