British non-public fairness agency Cinven is working with advisers Deutsche Financial institution and Citi because it plans to divest Italian life insurer Eurovita, reported Reuters citing sources.
This transfer follows Italy’s Institute for the Supervision of Insurance coverage’s (IVASS) directive asking Eurovita to boost its capital reserves by almost €250m.
The sale is crucial to fulfilling the insurance coverage watchdog’s specs.
In line with the sources, the Italian life insurance coverage agency is required to enhance its solvency ratio, a significant indicator of monetary power.
In March final 12 months, a report mentioned that Cinven is mulling the sale of Eurovita. A possible deal was anticipated to generate $710m.
Nevertheless, Cinven reportedly paused the sale course of as bids didn’t meet the valuation of €600-700m set by the UK agency.
Earlier this 12 months, IVASS carried out a follow-up to evaluate the steps taken up by the insurer to resolve its lapses.
The information company, quoting Eurovita’s 2021 monetary report, mentioned the agency’s solvency ratio on the finish of 2021 finish dropped under a “comfortable restrict” tolerance mark mounted at 150%.
Eurovita additionally reported lower in premiums in the course of the Covid-19 pandemic.
Within the report, Eurovita additionally talked about about a number of audits carried out by IVASS on investments, monetary dangers, cybersecurity checks in addition to cash laundering dangers. The Eurovita group was shaped in 2017 with the merger of ERGO Previdenza, Outdated Mutual Wealth Italy and Eurovita Assicurazioni.