Generali sells the 1.9 billion stake in "Leben"

Generali is making money in Germany but is already ready for new operations on the territory to strengthen himself in what is, in effect, a "central" strategic country for Leone di Trieste, unlike most of which it is in the last twelve months, including Guatemala, Holland, Colombia, Panama and Belgium

The insurance company headed by Philippe Donnet yesterday announced the sale of 89.9% from Generali Leben, a company specializing in life insurance policies at a guaranteed rate with a portfolio of about 37 billion euros, to Viridium Gruppe, active in the management of life portfolios. 100% of Generali Leben was valued at 1.9 billion including 125 million reserves related to a regulatory reform expected by the end of the summer and the repayment of 882 million subordinates. A price higher than badysts' forecasts and which allows Generali to add additional money to the 1,100 million euros repatriated with the restructuring program. The transaction improves the solvency at the group level by 2.6 basis points and generates a capital gain (before tax) of the order of 275 million. Not only that. The sale "will reduce interest rate risk exposure and increase liquidity at the holding level," says Moody's, promoting the deal.

Some of the resources found can be immediately reinvested in the same Viridium. Indeed, Generali has already reserved the right to acquire a minority stake, following the positive outcome of the due diligence. The holding company that controls Viridium is currently owned by Cinven (80%) and Hannover Re (20%). And it may not have finished here. After the transaction, Generali Deutschland will remain the leader in the Unit-Linked, Hybrid and Protection business and will remain the second largest operator in the country through the other units of the group.

"The operation will invest in innovative solutions for our German customers," commented Donnet: "Germany is a key market for Generali: we are working to strengthen our leadership position in the insurance sector ". On Piazza Affari, the stock closed at 14.6 euros, up 2.2%.