Last Tuesday, Generali announced its agreement to sell its US life reinsurance business to Scor. This was valued at EUR 579 million as a part of its strategic plan to eliminate non-core assets.
Mario Greco, Generali's new CEO, has promised to raise EUR 4 billion from the sale of the company's non-core assets by 2015. He made the announcement earlier this year and claimed that the move was to restore value and shore up capital.
Generali is Europe's third biggest insurer. The firm is also seeking to sell its private bank, BSI. Potential buyers; however, see the deal to have a book value lower than US$2.4 billion.
According to Generali, the total gross including the release of US$140 million collateral only amounted to US$920 million, but is expected to generate an added capital gain of US$150 million. By having to acquire Generali, Scor will remain consistent to its objective to grow fast and stable in the Americas after being the second biggest insurer in the country.
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