Generali to Sell 89.9% of Generali Leben in Germany

Generali has entered into an agreement to sell a majority stake of Generali Leben to Viridium Gruppe, a leading specialist for the management of life insurance portfolios in Germany. Viridium is owned by the international London-based private equity firm Cinven and the global German reinsurer Hannover Re.

• Total evaluation for 100% of Generali Leben up to €1 bln, incl. €125 mln as earn out in case of changes in the reservation rules. In addition, €882 mln of loans to be reimbursed to Generali Group;
• Life business in Germany rebalanced on Unit Linked, Hybrid and Protection products. Generali remains Germany’s second largest insurer;
• The transaction is in line with the Group’s strategic ambition of rebalancing its portfolio, significantly reducing exposure to interest rate risk and improving return on risk capital;
• Positive impact on German Solvency of approximately 43 p.p. and on Group Solvency of 2.6 p.p.;
• Contractual obligations toward customers will remain unchanged. The customers will continue to enjoy excellent customer service standards safeguarded by the expertise of Viridium and the Service Level Agreement with Generali Deutschland.
• Generali to maintain a 10.1% stake in Generali Leben and a seat on the Supervisory Board;
• Generali Investments Europe will manage the Generali Leben assets for a 5-year period, receiving a cumulative total fee of €275 mln;
• Generali will have the possibility to invest in a minority stake in Viridium, subject to the successful completion of the due diligence.