Dec 7, 2022
Generali Plans Sale of €20 Billion Italian Life Portfolio
Bloomberg News
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(Bloomberg) -- Assicurazioni Generali SpA is planning to sell a roughly €20 billion ($21 billion) Italian life insurance portfolio as part of a plan to improve profitability, people familiar with the matter said.
The Italian insurer, which has been working with an adviser to review the portfolio, may start a sale process as soon as January, the people said, asking to not be identified discussing confidential information.
The sale includes legacy policies from Societa Cattolica di Assicurazioni, a smaller rival that Generali bought last year, and Genertel, according to the people. It is unclear how much the portfolio would fetch in a sale.
Deliberations are ongoing and no final decisions on the size or timing of any deal have been taken, they said. A representative for Generali declined to comment.
The market for back books, or portfolios of old insurance policies, has been an active area of dealmaking as it provides a way for insurers to free up capital. Generali is among those that have been cutting exposure to life products.
A year ago, Generali’s Chief Executive Officer Philippe Donnet outlined plans to return as much as €5.6 billion in dividends to shareholders by 2024, as well as expand in non-life insurance asset management.
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