- Total expected proceeds to Generali - $920 million
- Successful disposal of a non-core asset with a consolidated capital gain of $150 million adding 1 percentage point to Solvency I ratio
Trieste – The Generali Group signed a definitive agreement today to sell its US life reinsurance business to SCOR. Total expected gross proceeds of $920 million comprise an estimated cash consideration for SCOR of $780 million at closing (including $30 million of estimated profit) and the release of $140 million of collateral.
This transaction is part of the strategy to withdraw from non-core businesses and optimise capital allocation announced by the Group in January. The deal includes the sale of 100% of Generali U.S. Holdings and its subsidiaries as well as the recapture of the business currently retroceded to Assicurazioni Generali.
The sale is expected to generate a capital gain net of taxes of approximately $150 million on a consolidated basis for the Group, further strengthening the Group’s liquidity position and improving the Solvency I ratio by approximately 1 percentage point. Total gross proceeds from the disposal correspond to an implied c. 15x multiple on 2012 full year earnings.
The Generali Group CEO Mario Greco said: “We continue to make steady progress in our strategy of disposing of non-core assets and strengthening the Group’s capital position. The sale of Generali US is a further step in the transformation of our Group and delivering against the goal of re-focusing on our core insurance business.”
For more information, please visit the Generali Group website at http://www.generali.com/Generali-Group/Media-Relations/press-releases/2013/sezione/301193.html.