Generali sells UK non-life portfolio
Italy’s Generali is selling a non-life run-off portfolio of its UK branch to Compre Group, a discontinued business specialists in the insurance industry.
The portfolio consists of approximately €300 million of liabilities.
“This transaction, which attracted a high level of interest from the market, is another step forward in our efforts to optimize the Group’s capital allocation,” said Luigi Lubelli, Generali group chief financial officer.
“It allows Generali to release capital, reduce costs, and remove the potential source of volatility inherent in such long-tail business lines. Further, it shows that Generali is committed to reallocate its capital where it can best be used, going beyond the current global review of its markets.”
Frédéric de Courtois, Generali CEO global business lines & international, added: “This deal is instrumental in further increasing the operational efficiency of Generali. The group is committed to the UK business through our Generali global corporate & commercial unit that develops property & casualty business and insurance services for mid- to large-sized companies, Generali global health with its coordination centre in London and our UK employee benefits business, part of the Generali employee benefits network, that provides coverage to individuals working in firms ranging from mid-sized companies to global conglomerates.”
As an initial step, Generali has signed a reinsurance contract that covers all claims payments arising from that legacy business, to be followed by a legal portfolio transfer which remains conditional upon the approval of the competent authorities.
As part of the overall transaction, Generali has also agreed to reinsure the non-life run-off portfolio of its US branch with the same counterparty.
The portfolios, comprising APH and some UK employers liability business, have been in run-off since the early 2000s, Compre said in a separate press release.
The transaction is structured as an upfront reinsurance solution by way of a loss portfolio transfer for both branches. Legal business transfer for the liabilities of the UK branch portfolio will follow, subject to regulatory approval. The US branch will remain as a longer-term reinsurance solution until suitable legal transfer mechanisms become more widely available in the US.
The deal takes the total number of portfolios Compre has acquired to 29, in addition to its acquisition of 11 companies with discontinued business.
Nick Steer, CEO of Compre, said: “In acquiring these portfolios Compre has completed its largest deal to date and our first with an Italian counterparty. Competing successfully in such a highly competitive process clearly demonstrates our appetite and ability to undertake larger-scale transactions and the high regard in which Compre is held by highly reputable re/insurers across Europe.”
More of today's news
Arthur J Gallagher and Alliant settle $900,000 poaching dispute
Australia government drops state reinsurer plans
Chubb appoints new head of international property
Global reinsurers face ‘considerable uncertainty’ in 2018: AM Best
Founder of PIB and EC3 Brokers joins Endeavour as non-exec chair
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze