Generali sells Dutch business to local insurer for €143m

Added 13th September 2017

Italian insurer Generali has agreed to sell its Dutch operation to the former Fortis insurance arm ASR Nederland for €143m (£129m, $171m).

Generali sells Dutch business to local insurer for €143m

The disposal is part of a plan announced in November by Europe’s third-biggest insurer to withdraw from less profitable markets where it lacks scale, and to focus on core countries.

It follows a $172m accord last month for the sale of its Panamanian business to Spanish insurer ASSA Compañía de Seguros and a €30m deal with Talanx in July for its Colombian operations.

The moves form part of a wider strategy aimed at “optimizing Generali’s geographical presence, increase operational efficiency and improve capital allocation” with a view to raising at least €1bn from disposals, the company explained.

“With this transaction, we reaffirm our commitment to the rebalancing of Generali Group’s geographical presence across the world,” said Frédéric de Courtois, Generali’s group chief executive for the global business lines.

“We are well on track in executing our strategy and we are confident to generate at least €1bn of cash”.

As part of the transaction, Generali will cease to provide any reinsurance support to Generali Nederland’s insurance subsidiaries, resulting in the withdrawal by the Dutch life insurance company of the reinsured portfolio with Assicurazioni Generali.

The deal in numbers

Generali Nederland generated premiums of €379m in 2016, according to ASR.

The acquisition would add €30m to ASR’s annual profit after the deal closes in the first quarter of 2018, ASR chief executive Jos Baeten told the Reuters news agency.

At the same time, Generali said the sale of Generali Nederland, which contributed around €9m to the group’s operating result in 2016, would generate a one-off net loss of €270m.

However, the Italian insurer estimated that the disposal is set to lift Generali’s Solvency II ratio, a measure of financial strength, by around 1.6%.

The transaction is subject to the approval of the relevant competition and regulatory authorities and is expected to be finalized in the first half of 2018.

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Eugenio Montesano
Eugenio Montesano

Senior Reporter

Eugenio joined International Adviser in July 2017 from Citywire, where he was editor of the Italian publications for over three years, covering the retail segment of the country’s asset management industry. Prior to that, he was an assistant producer at APTN, the Associated Press Television News, where he covered Italian politics and international news. Eugenio has a masters degree in International Journalism from City, University of London.

Features

Why you should care about the German elections

Why you should care about the German elections...

You may be forgiven for not staying up late this Sunday to watch the final results of Germany’s parliamentary elections come in. While chancellor Merkel is sure to win, the scale of her victory is likely...

Analysis

Profiles

Directories

Canada Life International Limited
Canada Life International...

Canada Life International Canada Life House,...

Tweets

Events

IA Best Practice Adviser Awards Europe 2017
IA Best Practice Adviser Awards Europe 2017

Thursday 28 September
The Waldorf Hilton, London

IA Future Advisory Forum Europe 2017
IA Future Advisory Forum Europe 2017

Thursday 28 September
The Waldorf Hilton, London

IA Future Advisory Forum Cape Town 2017
IA Future Advisory Forum Cape Town 2017

Thursday 5 October
The Vineyard Hotel, Cape Town

IA Best Practice Adviser Awards South Africa 2017
IA Best Practice Adviser Awards South Africa 2017

Thursday 5 October
The Vineyard Hotel, Cape Town

Sponsored Content

Investment Strategy

OTHER STORIES FROM LAST WORD...