The Generali group has signed an agreement for the sale of its entire stake (98,56%) in Generali Nederland NV (Generali Nederland). The transaction is part of the strategy of optimizing the geographical presence and improving operational efficiency and capital allocation. This is what we read in a note from the company.
The contribution of the Dutch subsidiary to the Group's operating result was marginal and equal to approximately 9 million in 2016. Following this transaction, Generali will receive an initial consideration of 143 million, subject to adjustment upon closing of the transaction.
“With this transaction, we reaffirm our commitment to rebalancing the geographical presence of the Generali Group – commented Frédéric de Courtois, group CEO global business lines & international – After completing the sale of the business in Guatemala and after the sale of those in Colombia and Panama, this operation represents a significant step to implement the strategy announced at the last Investor Day. We are in line with our plan and we are certain that we will reach our revenue target of at least 1 billion euro”.
The group has signed an agreement for the sale of its stake in Generali Nederland (and its subsidiaries) to ASR Nederland, one of the leading insurance companies in the Netherlands. As part of the transaction, Generali will cease to provide its reinsurance support to the insurance subsidiaries of Generali Nederland, with the consequent withdrawal by the Dutch life company of the reinsured portfolio with Assicurazioni Generali.
The transaction will have a positive impact in terms of Group solvency, allowing an estimated improvement in the Regulatory Solvency II Ratio of around 1,6 percentage points; it is expected that the sale will lead to a realized loss of approximately 270 million.
As usual, the transaction is subject to the approval of the competent authorities and its completion is expected within the first half of 2018. Generali was assisted by Bnp Paribas Corporate Finance and KPMG Corporate Finance as financial advisors; by Linklaters LLP as legal adviser.
