Generali agrees to sale of stake in Mexico to Banorte for $858 mln (€649 mln)

  • Net capital gain €500 mln, adding 4 p.p. to Solvency I ratio
  • Achieved more than half of the €4 bln disposal target
 
Trieste – The Generali Group today signed an agreement with Grupo Financiero Banorte to sell its 49% minority stakes in the Mexican companies Seguros Banorte Generali and Pensiones Banorte Generali for a total gross consideration of $857.5 million (€649 million). The transaction follows the acquisition proposal made by Banorte, which held a 51% stake in the two companies and controlled the distribution.
 
The deal generates a net capital gain for Generali of approximately €500 million on a consolidated basis, further strengthening the Group’s liquidity and capital position with an improvement of 4 percentage points to its Solvency I ratio.
 
Through this transaction Generali reaches more than €2.2 billion from the disposals since August 2012, corresponding to over half of the 2015 target of €4 billion.
 
We seized Banorte’s offer at the best conditions for us and withdrew from a minority position which was no longer consistent with Generali’s current strategy to manage its invested capital actively," said the Group CEO of Generali, Mario Greco. 
 
"Latin America remains a very attractive market for Generali; we therefore are interested in developing our business in the region, in particular in the Brazilian market. The disposal of the minority stakes we held in Mexico is attractive from a financial point of view and allow us to strengthen the Group’s capital position, one of our strategic goals. Through this transaction we have already achieved more than half of our disposal plan which we remain confident of completing within the previously communicated plan period.”
 
For more information, please visit the Generali Group website at www.generali.com.