Italian insurance company Generali has agreed to sell two of its business units Generali Worldwide Insurance and Generali Link to Life Company Consolidation Group (LCCG).
Image: Generali’s headquarters in Trieste, Italy. Photo: courtesy of Massimo Goina/ Assicurazioni Generali S.p.A.
Generali will receive about €409m as base consideration along with an additional €10m in contingent consideration to be paid at completion of the transaction.
The transaction is subject to customary closing conditions including regulatory approval.
Guernsey-based Generali Worldwide Insurance provides life insurance-based wealth management and employee benefit solutions to individuals, multi-national organizations, international expatriates and local resident populations, in a range of territories where it is licensed.
Generali Link is an Ireland-based company established as a shared service provider, focused on fund and policy Administration.
It offers services to Generali Worldwide along with Generali PanEurope dac, which were also recently acquired by LCCG and renamed Utmost PanEurope dac.
Generali global business lines & international unit head Frédéric de Courtois said: “This agreement affirms our ongoing efforts to optimize the Generali’s geographical presence across the globe within this year. With a total value of the deals over €1.5bn, significantly above the initial target of €1bn, Generali reaffirms its ability to successfully pursue the targets of its strategic plan.”
The sale is part of Generali’s strategy to optimize its geographical footprint and to increase its operational efficiency and to improve its capital allocation.
The company stated that it will be working closely with LCCG in the coming months to ensure that a smooth transition of ownership takes place and a seamless continuity in day-to-day operations is established.
It is specifically in relation to its group employee benefits offering and Generali Worldwide will remain active and will act as a the partner of the Generali employee benefits network to serve its existing and future clients.
Generali also stated that it will retain the health portfolio of Generali Worldwide in the Caribbean, which will be managed by the global health division of Generali. The move will allow it to maintain its presence in the region with the aim to further reinforce its strategy of sustainable growth.