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TRIESTE Assicurazioni Generali sells 89.9% of Generali Leben, a German subsidiary that manages 4 million life insurance contracts and has 37.1 billion reserves. The company has been valued at one billion euros, of which 125 million price supplements will be paid if the rules on additional technical provisions are changed. The collection, which generates a capital gain of 275 million sums to 1.9 billion given the 882 million subordinate instruments that will be reimbursed to Leo of Trieste e. It will be Viridium, a German group specializing in the management of life portfolios, controlled by Cinven funds (80%) and reinsurer Hannover Re (20%).
Generali will divest the remaining 10.1% stake in Leben after three years of closing and purchase a minority stake in Viridium in the event of a positive result of due diligence .
The sale does not represent a disengagement from Germany which remains "a fundamental market", but "will allow to invest in innovative solutions for our German customers, guaranteeing a better return for our shareholders ", Says Philippe Donnet ." Management and all colleagues work with great determination to strengthen our leadership position in the insurance sector. This commitment – concludes Donnet – allows us to look confidently at our future in the marketplace. "
The transaction concerns the guaranteed return policy portfolio and will reduce the exposure to interest rate risk, increasing 2.6 percentage points the index of solvency of the group Leben's production had already been frozen at the beginning of 2018 as part of the reorganization plan for the German activities Despite the sale, Generali Deutschland will remain the second largest company in the country, with a leading position in the field of unit contracts , hybrids and protection and will maintain Leben 's badet management for a period of 5 years in exchange for a total commission of 275 million euros
"We are committed to ensuring maximum continuity of service to our customers, opportunities for our employees and new investments for growth" says Giovanni Liverani CEO of Generali Deutschland, according to which, despite the sale, "we are today more than ever in the best conditions to strengthen our presence among the leaders in Germany".
On the Generali Stock Exchange, it closed up 2.28% to 14.6 €. For Moody's, the sale is "positive" since it "will reduce interest rate risk exposure and increase liquidity at the holding level". According to Equita, the sale takes place on "better than expected" terms because "Generali will record a capital gain" and not a "capital loss contained" and "will manage the badets of Generali Leben for five years".
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