Generali, the third largest insurer in Europe, is now nearing the sale of its US life reinsurance subsidiary. It is now deciding on just two bidders, according to two sources with direct knowledge of the transaction who spoke on condition of anonymity.
The choices are Scor, the France based reinsurer and a US rival of Generali. The two frontrunners were also identified in a news article that appeared in Sole 24, the Italian finance daily.
The new CEO of Generali, Mario Greco is aiming to raise nearly Eur4 billion from its non-core asset portfolio in order to increase capitalization as restore the Generali value after the ouster of former CEO Giovanni Perissinotti by investors such as Mediobanca.
The projected price for the unit is pegged between US$800 million and US$1 billion. It is also including in the sale its private bank BSI which is on sale at Eur2 billion or US$2.60 billion.
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