Generali to sell Ireland-based Generali PanEurope
Generali has entered into a share purchase agreement with Life Company Consolidation Group (LCCG) to sell its entire shareholding in Generali PanEurope. Generali PanEurope has operated in Ireland since 1999 and offers financial solutions across Europe to high net worth and affluent individuals for investment and savings, as well as to companies that wish to provide life and protection benefits for their employees.
“This transaction underscores our ongoing efforts to rationalize Generali’s geographical footprint across the globe. After having agreed to sell our operations in a number of other markets, this transaction is a further step towards the strategy announced just over a year ago at our Investor Day presentation, a strategy we are well on target to complete” – Group CEO Global Business Lines & International, Frédéric de Courtois.
The contribution of Generali PanEurope to the Group’s operating result was approximately €20 million in 2016. Specifically, in relation to its Group Risk offering, the company will remain active in employee benefits and act as the Irish partner of the Generali Employee Benefits network (GEB) to serve its existing and future clients.
Generali will receive, as initial consideration, €230 million (to which an interest component accrued until closing will be added) and a potential deferred consideration of up to €10 million to be paid 12 months after closing. The consideration will be subject to certain customary adjustments following closing. In addition, Generali will receive approximately €56 million as settlement for certain intercompany financing arrangements, for total cash proceeds at closing of approximately €286 million.
The transaction will add approximately 0.4% points to the Group’s Regulatory Solvency II ratio, and it is expected to generate a post-tax gain of approximately €56 million.
