French diversified financial service conglomerate SCOR Group has acquired the US life reinsurance business of Italy-based insurer Generali Group, for total gross proceeds of $910m in a combination of cash and collateral.
The acquisition, which was originally inked on 4 June 2013, concluded following the final approval of the relevant regulatory authorities.
Based on the terms of the agreements, the recapture of the business currently retroceded to Assicurazioni Generali is likely to be completed soon.
Comprising the cash consideration of $779m and $131m of cash collateral, the disposal of the US life reinsurance business is part of Generali’s plan to scale back non-core businesses and optimize capital allocation.
Generali Group CEO Mario Greco said, "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."
Post-transaction, the acquired entity Generali USA Life Reassurance will be rebranded as SCOR Global Life USA Reinsurance Company.
Generali US manages Generali USA Life Reassurance Company that offers reinsurance services for individual and group life products, and the captive company Generali Reassurance (Bermuda).
Citigroup, Mediobanca, Fried Frank and Cleary Gottlieb acted as the advisers to Generali pertaining to the transaction.
With a work force of 80,000 employees globally, Generali serves 65 million customers in more than 60 nations and had reported total premium income of €70bn in 2012.