Italian insurance company Generali has completed the sale of its operations in Panama and Columbia for about €170m.
The two transactions were announced back in July and August 2017, respectively.
The sales are part of the company’s strategy to rationalise its international footprint and to improve its operational efficiency and capital allocation.
Generali agreed to sell majority stake in its Columbian companies Generali Seguros and Generali Vida to Talanx Group.
As per the agreement, Talanx Group acquired 91.3% stake in Generali Seguros and 93.3% stake in Generali Vida.
In 2016, Generali Colombia recorded a total premium income of about €59m and a shareholders’ equity of about €22m. The company ranks in the 22nd place in the Columbian market with less than 1% market share.
On the other hand, the operations in Panama were sold to ASSA Compañía de Seguros for an amount of €139m, subject to adjustment on closure.
Generali stated that through ASSA, it will remain active in Panama with its international business lines, Generali Employee Benefits, Generali Global Corporate & Commercial and Europ Assistance.
Last year when the transaction was announced, Generali global business lines & international group CEO Frédéric de Courtois stated that the transaction is a step towards rebalancing Generali Group’s geographical presence across the world. The company plans to made progress in optimizing its geographical footprint.
Generali Latin America group regional manager Antonio Cassio dos Santos said: “We are executing our plan with discipline with the objective to be more focused and stronger in Latin America.”
Last year, Generali also completed the sale of its stake in Guatemala-based subsidiary to the Neutze family, its long-term trusted local partners, Aseguradora General. The company is active in property & casualty segment.
Image: Generali’s Trieste building in Italy. Photo: Courtesy of Assicurazioni Generali S.p.A.