Generali Group has agreedt to dispose of its 49% stakes in the Mexican insurance joint ventures (JVs), Seguros Banorte Generali and Pensiones Banorte Generali, to Grupo Financiero Banorte, in a deal valued at $857.5m (€649m).
Following completion of sale, the Italy-based underwriter has accomplished more than half of the €4bn disposal target to be completed by 2015 and earned a net capital gain of nearly €500m, which boosted its liquidity and capital position by 4% points.
The acquirer, which already holds a 51% stake in the two firms and controls the distribution of products, said that the deal will boost its operations in the country.
Generali Group CEO Mario Greco said that the minority stake in the JVs were no longer consistent with its current strategy, however the company will continue to develop its business in Latin America, particular in the Brazilian market.
The sale is part of its plan announced in January 2013 to offload non-core assets to concentrate on its core insurance business and transform the company into a global insurance organization.
The stake sale in both the companies will contribute a net capital gain of €482m ($637m) as well as €167m ($220.5m), respectively.
Besides leveraging traditional channels, Seguros operates in the life and P&C segments mainly through bancassurance, while Pensiones trades in the social security related life annuities segment.