Generali May Sell EUR40 Billion German Life Insurance Portfolio
28 Setembro 2017 - 1:56PM
Dow Jones News
By Pietro Lombardi
Generali SpA (G.MI) doesn't rule out the sale of a 40 billion
euro ($47.1 billion) life insurance portfolio of Generali Leben as
part of the reorganization of its German operations, the Italian
insurer said Thursday.
The company, based in the city of Trieste, said it would put its
Generali Leben business into runoff --namely, it would honor its
obligations on existing policies but not add new ones-- in the
first quarter of 2018, paving the way for potential disposal.
The move will improve the group's economic solvency, it said.
UBS analysts estimate a sale of Generali Leben could generate
between EUR700 million and EUR900 million in proceeds.
In addition, in 2018, Generali's EVG network of 2,800 agents in
Germany will be folded into an existing joint venture the company
has with insurance agent network DVAG, in which it also has a
stake.
"The runoff of Generali Leben will free up resources that will
allow us to capture new growth opportunities in the German market,"
Chief Executive Officer Philippe Donnet said.
With gross written premiums of more than EUR16 billion, Germany
is the second-biggest market for Generali after Italy.
The move is part of the wider reorganization of Generali
Deutschland, the second-largest primary insurer in Germany. The
plan, aimed at strengthening operating performance, includes
rationalizing the company's German portfolio, streamlining the
operations and investing to develop its direct insurer
CosmosDirekt.
Last year Generali outlined a plan to rejig its geographical
presence by leaving less profitable markets to focus on core ones.
As part of the plan, Generali agreed to sell its Dutch business
Generali Nederland NV earlier this month. Generali expects the plan
to generate at least EUR1 billion of cash by 2018.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
September 28, 2017 12:41 ET (16:41 GMT)
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