Italy's Generali to become major shareholder in rival Cattolica

Generali has committed to becoming a major shareholder of Italian insurer Cattolica Group with a 24.4 percent stake through a reserved share capital increase for €300 million.

The two companies have launched a strategic partnership, which will be based on industrial and commercial agreements, share capital increase, and legal structure and governance.

Under the multi-year agreement, Cattolica will transform from a cooperative entity to a joint-stock company (Società per Azioni), with effect from 1 April 2021, and adopt statutory amendments to protect the investment.

The partnership is aimed at generating opportunities and direct benefits for both Generali and Cattolica in four strategic business areas - asset management, internet of things, health business and reinsurance.

Generali will also have the option to subscribe, on a pro-rata basis, the subsequent capital increase for an additional maximum amount of €200 million.

Marco Sesana, country manager and CEO of Generali Italia and Global Business Lines, commented: “The strategic partnership with Cattolica represents a unique opportunity currently in Italy for profitable growth in asset management and innovative services for P&C customer services, pillars of our 2021 Life-time Partner strategy.

"This allows us to extend our health and telematic services to the more than 3.5 million Cattolica customers, thanks to the innovative platforms of Generali Welion and Generali Jeniot. Becoming a major shareholder represents an opportunity to be part of Cattolica’s financial strengthening and its transformation into a joint-stock company.”

Paolo Bedoni, chairman of Cattolica Assicurazioni, and Carlo Ferraresi, general manager, said: “The strategic partnership with the Generali Group represents an important project in Cattolica’s history which, with the objective of maintaining the focus on local territories, customers and employees, offers an important opportunity to create value for members and shareholders.

"Through this agreement, the Cattolica Group will provide benefits for its customers in terms of new and innovative services from the Generali Group, and will be able to reinforce its capital position.”