Generali sold the closed-end Life portfolio of its UK branch to a subsidiary of Reinsurance Group of America - one of the leading life and health reinsurance companies in the world - corresponding to around 680 million of "best estimates liabilities" as at 31 December 2018 The portfolio consists mainly of paid annuity policies.
“This operation – underlines the company – further strengthens Generali's capital position with an increase of approximately 1 percentage point of the Group's Regulatory Solvency Ratio and allows it to concentrate on its core business”.
"Thanks to the sale of the closed-end Life portfolio, we will free up resources that can then be reused for new investment opportunities and, moreover, we will improve the operational efficiency of our branch", commented Cristiano Borean, group chief financial officer of Generali.
For this operation, Generali has signed a reinsurance contract which, subject to the transfer of the related assets to a pre-established collateral, will cover the payment of all the claims deriving from most of the closed portfolio involved in the operation.
The residual part will be transferred directly to the counterparty. The transfer of the portfolio as a whole will take place following the approval by the competent authorities.
