Generali makes $1.4bn offer to buy remaining Cattolica Assicurazioni stake

Italian insurer  Generali has launched a $1.4 billion cash offer to buy all of the shares of Cattolica Assicurazioniit does not already own. It said the move would consolidate its position in Italy in property/casualty and life and reinforce its position amongst the biggest European insurers.

Generali said the offer is expected to build on the momentum of the strategic partnership it entered into with Cattolica in June 2020, when it acquired 24 percent of the business. It said the deal should allow customers of both organisations to benefit from the breadth of the combined product offering, the expanded reach of distribution channels and the integration of key digital technologies.

The related integration costs are estimated as €150-200 million before tax, to be incurred over the next four years. Generali expects limited execution risk in the implementation of the merger between the two groups, thanks to the strategic partnership already underway with Cattolica and given the track record of Generali in managing integrations.

Following the completion of the offer, Generali said it expects “to generate significant value creation in the medium and long term, taking into account the synergies achievable through the transaction”.

The company added: “The proposed transaction is fully aligned with the guidelines of the Generali 2021 Strategic Plan, its rigorous and disciplined approach to M&A and its commitment to deliver profitable growth and create value for customers and shareholders.”

The finalisation of the transaction is expected to take place by the end of this year.

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