Assicurazioni Generali is considering divestment of an roughly €20bn ($21bn) life insurance coverage portfolio in Italy, Bloomberg has reported.
Individuals conversant in the matter informed the publication that the transfer is a part of the Italian insurer’s technique to spice up profitability.
The insurer has already employed an adviser to evaluation the portfolio and should start the sale course of as early as January, the report stated.
The sale could comprise legacy insurance policies from Societa Cattolica di Assicurazioni , which was acquired by Generali final 12 months, and Genertel.
Nonetheless, it’s not clear but how a lot the portfolio may fetch in a sale, the sources stated.
The sources added that talks are nonetheless underway and that no selections relating to the scope or timing of any contract have been made.
Generali’s consultant declined to touch upon the Bloomberg’s report.
Dealmaking has been energetic available in the market for outdated insurance coverage coverage portfolios as a result of it permits insurers to unlock capitals and Generali is among the many insurance coverage corporations that has been slashing publicity to life merchandise.
Generali’s chief govt Philippe Donnet final 12 months introduced plans to pay as much as €5.6bn in dividends to shareholders by 2024 and foray into non-life insurance coverage asset administration.
Generali launched a €1.17bn buyout supply for Cattolica in Might 2021 and elevated its stake within the insurer to 84.47% in November that 12 months.
Earlier than that, Generali, which seeks to stop overseas insurers from rising within the Italian market by means of the deal, made a €300m funding in Cattolica.
In March this 12 months, Generali acquired your entire 16% stake in Future Generali India Life (FGIL) from Industrial Funding Belief Restricted (IITL ). The stake constructing in Indian JVs is a part of the Italian agency’s ‘Lifetime Accomplice 24: Driving Progress’ technique, which goals to bolster its place in fast-growing markets.