Generali sells 100% of its stake in Generali PanEurope to Life Company Consolidation Group. The operation, explains Leone in a note, "is part of the group's strategy aimed at optimizing the geographical presence, improving operational efficiency" and the allocation of capital. The operation arrives, in chronological order, after the divestment of the business in the Netherlands happened last summer.
“This transaction underlines our ongoing commitment to rebalancing Generali's geographical presence in the world – commented Frédéric de Courtois, group CEO Global Business Lines & International – After initiating similar transactions in other markets, this transaction represents a further step forward in our strategy, presented during the last Investor Day one year ago, and we are well positioned to complete it”.
Over the next few months, Generali will work closely with the buyer to facilitate the transition to the new ownership structure and ensure the continuation of day-to-day business.
Generali PanEurope's contribution to the Group's operating result amounted to approximately €20 million in FY 2016. The company will remain active in the employee benefits segment and will operate as an Irish partner of the Generali Employee Benefits (GEB) network to assist existing customers and those that will be acquired in the future.
Following this transaction, the group will receive an initial consideration of 230 million (to which interest accrued upon closing of the transaction will be added) and a possible deferred consideration up to a maximum of 10 million which will be paid 12 months after the closing of the transaction. 'operation. The consideration will be subject to adjustment upon closing of the transaction. In addition, the group will receive approximately 56 million as repayment of some intercompany loans. Therefore, the total amount that will be paid to Generali at the closing will be around 286 million.
The transaction will have a positive impact in terms of group solvency, allowing an estimated improvement in the Regulatory Solvency II Ratio of approximately 0,4 percentage points; the sale is expected to result in a capital gain after tax of 56 million.
The transaction is subject, inter alia, to the approval of the competent authorities and its completion is expected within the first half of 2018.
Generali was advised by Nomura International plc as financial adviser and by McCann FitzGerald as legal adviser.
