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Concentrate on its core business and further strengthen the group’s capital position – those are Generali’s to-do’s as it lets go of the life run-off portfolio of its UK branch.
Without disclosing the amount of the transaction, Generali announced that it has signed a sale agreement with a Reinsurance Group of America subsidiary. The portfolio being offloaded consists mainly of annuity business.
“Thanks to the sale of this run-off portfolio, we are going to release resources that we can reinvest in new opportunities,” said Generali chief financial officer Cristiano Borean. “The operation also further improves the operating efficiency of our UK branch.”
According to the Italian insurance giant, the deal will result in an increase of approximately one percentage point on its group regulatory solvency ratio.
“As part of the overall transaction, Generali has signed a reinsurance contract which, subject to completion of the customary collateral settlement procedures, will be covering all claims payments arising from most of that legacy business,” noted the insurer.
“The remaining minor portion will be transferred directly to the counterparty.”
Meanwhile the portfolio transfer of the whole identified book of business will commence upon approval of the competent authorities.
