The third largest insurer in Europe, Generali, again announced last Tuesday that it is selling off its US life reinsurance unit together with its private banking unit, BSI.
According to Generali CEO Mario Greco, the firm aims to raise Eur4 billion from the sale of non-core assets to increase its capital reserves and restore company valuations.
Greco, while speaking at the shareholder meeting of Generali, said he did not intend to seek shareholder support to help fund its solvency issues and capital base.
Previously, Generali chose the Reinsurance Group of America and Scor were frontrunners for Generali USA. The deal is reportedly near US$1 billion. Other bidders were Munich Re, Swiss Re, Zurich Insurance, Hannover Re, RGA and other firms.
The projected cost for Generali USA would be between US$800 million and US$1 billion while private bank BSI is expected to fetch Eur2 billion.
Many European insurers were being forced to restructure to be able to cope with low interest rates, increased regulations and weak economic landscape.
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