Italian insurer Generali Group has inked an agreement with Cattolica to divest 100% of the capital of Fata Assicurazioni Danni, in a transaction valued at nearly €179m.
Generali noted that the transaction will enable it to further strengthen its liquidity and capital positions, while improving its Solvency I ratio by 0.6%.
Generali CEO Mario Greco said, "The sale of Fata, completed at attractive financial conditions, allows us to continue to strengthen the Group’s capital position and to reach €2.4 billion of proceeds from disposals since August 2012, 60% of the €4 billion target to 2015."
Through a distribution network of 171 agencies across Italy, Fata Assicurazioni is engaged in the business sector of agricultural risks – many of which tied to ‘Consorzi Agrari’ (agricultural consortia).
In 2012, Fata posted a total premium income of €434m and a net profit of approximately €12m.
After the completion of the sale, the Generali Group will remain operating in the Italian agricultural risk business through the Generali Italia network.
The transaction is likely to complete during the first half of 2014, subject to the necessary regulatory approvals.
KPMG Corporate Finance served as financial advisor and Norton Rose Fulbright as legal advisor to Generali.
The current divestment of Fata Danni follows two insurance business sales in October. Generali divested its 49% minority stakes in the Mexican insurance joint ventures (JVs), Seguros Banorte Generali and Pensiones Banorte Generali, to Grupo Financiero Banorte, in a deal valued at $858m (€631m).
Furthermore, it also disposed its US life reinsurance business to French diversified financial service conglomerate SCOR Group, for total gross proceeds of $910m in a combination of cash and collateral.