The Italian insurance giant has completed the sale of its local business in Guatemala, and has entered into an agreement to dispose of its Colombian division, the company said.
The group announced the completion of the sale of its stake in Aseguradora General, a Guatemala-based insurance subsidiary mainly active in the property and casualty segment.
Generali is selling the stake to the Neutze family, “its long-term trusted local partners” in the country, it said.
However, the group has confirmed it will remain active in Guatemala with its international business lines; namely, Generali Employee Benefits, Generali Global Corporate & Commercial and Europ Assistance.
€30m deal in Colombia
The insurer also announced it has agreed to dispose of its majority holding in its Colombian companies to German insurance firm Talanx Group.
The sales involves selling 91.3% of Generali Seguros and 93.3% of Generali Vida.
Reuters news agency reported the deal to be worth “around €30m”.
The transaction is subject to the approval of the relevant authorities and should be completed by the end of the year, Talanx told Reuters.
In 2016, Generali Colombia recorded a total premium income of around €59m (£52.2m, $67.8m) and a shareholders’ equity of approximately €22m, according to the announcement.
Generali Colombia’s share in the local insurance market is below 1%, ranking 22nd, the company noted.
Leaner structure
These sales are part of Generali’s plans to withdraw from less profitable markets and focus on more core countries and lines of business with greater potential and less capital or cash absorption.
The moves form part of a wider strategy aimed at “making Generali a simpler and smarter company”, said Frédéric de Courtois, Generali’s group chief executive for the global business lines.
Last year, the firm also pulled out of Liechtenstein.
Cost-cutting drive
The insurance giant has asked advisory bank Rothschild to find a new owner for its subsidiaries in Ecuador and Panama too, reports Reuters.
The sale process in these LatAm countries could begin after Generali completes the divestment of its Netherlands unit.
The company is also assessing the exit from Portugal and Belgium.
Earlier in the month, the company announced it was looking for buyers for Generali Leben, its closed book German life insurance unit.
In May, Generali unveiled a fresh push into asset management and said it will bolster its fee-based business.
