The CEO of Generali Deutschland, Giovanni Liverani, stated: “This is the final step in the strategic turnaround of Generali in Germany, which allows us to grow and be stronger in this market. This commitment makes us confident about our future in the market.” The management team and all of our colleagues are working relentlessly to strengthen our position as a leader in the insurance industry. This transaction will allow us to invest in innovative solutions for our German customers, guaranteeing a higher return for our shareholders. All of our stakeholders will benefit from it. Generali Group CEO, Philippe Donnet, commented: “Today’s decision represents a key step in the process of strengthening Generali according to our strategy. Generali and Viridium will respectively retain on this stake customary put and call options to be exercised starting from three years after closing. In addition, Generali will maintain a 10.1% stake in Generali Leben and a seat on the supervisory board. Corporate business (bAV 3) customers will be further supported by the specialized Competence Center of Generali in Frankfurt. Retail customers will continue to receive the excellent service standards also thanks to the specific expertise and resources of Viridium, supported in the mid-term by a Service Level Agreement with Generali Deutschland. After the transaction, Generali Deutschland will remain a leader in the Unit-Linked, Hybrid and Protection business and will maintain its position as the second largest German insurer, through the other business units of the Group.Ĭontractual obligations towards customers will remain unchanged. It manages 4 million policies with traditional reserves amounting to €37.1 billion and includes several portfolios of formerly merged companies. Generali Leben represents approximately 36% of Generali Deutschland’s Life reserves 2 and is mainly focused on the guaranteed traditional policy business.
to the Group Solvency II positions respectively, generating a capital gain (gross of tax) of approximately €275 million at Group level. The transaction will add approximately 43 p.p. The transaction will improve the return on risk capital and will mitigate the Group’s exposure to interest rate risk. The total evaluation for 100% of Generali Leben is up to € 1 billion, including €125 million as earn-out in case of changes in the rules regulating the allocation to ZZR 1 reserves.Viridium will also reimburse €882 million of hybrid loans to Generali Group. Generali Deutschland will sell 89.9% of Generali Leben to Viridium. The transaction is expected to be signed shortly. The transaction will serve the interests of the customers and all stakeholders through an innovative industrial partnership. Viridium is owned by the international London-based private equity firm Cinven and the global German reinsurer Hannover Re. Trieste/Munich – The Board of Directors of Assicurazioni Generali and the Supervisory Board of Generali Deutschland have entered into an agreement to sell the majority stake of Generali Leben to Viridium Gruppe, a leading specialist for the management of life insurance portfolios in Germany. Generali will have the possibility to invest in a minority stake in Viridium, subject to the successful completion of the due diligence.Generali Investments Europe will manage the Generali Leben assets for a 5-year period, receiving a cumulative total fee of €275 mln.Generali to maintain a 10.1% stake in Generali Leben and a seat on the Supervisory Board The customers will continue to enjoy excellent customer service standards safeguarded by the expertise of Viridium and the Service Level Agreement with Generali Deutschland. Contractual obligations toward customers will remain unchanged.Positive impact on German Solvency of approximately 43 p.p.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.Generali remains Germany’s second largest insurer Life business in Germany rebalanced on Unit Linked, Hybrid and Protection products.
In addition, €882 mln of loans to be reimbursed to Generali Group €125 mln as earn out in case of changes in the reservation rules.
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