Life - Articles - Generali to sell US life reinsurance unit to SCOR

 The Generali Group has signed a definitive agreement to sell its US life reinsurance business to SCOR. Total expected gross proceeds of $920m comprise an estimated cash consideration for SCOR of $780m at closing(including $30m of estimated profit) and the release of $140m of collateral.

 This transaction is part of the strategy to withdraw from non-core businesses and optimise capital allocation announced by the Group in January. The deal includes the sale of 100% of Generali U.S. Holdings and its subsidiaries as well as the recapture of the business currently retroceded to Generali.

 The sale is expected to generate a capital gain net of taxes of approximately $150m on a consolidated basis for the Group, further strengthening the Group’s liquidity position and improving the Solvency I ratio by approximately 1 percentage point. Total gross proceeds from the disposal correspond to an implied c. 15x multiple on 2012 full year earnings.

 The Generali Group CEO Mario Greco said “We continue to make steady progress in our strategy of disposing of non-core assets and strengthening the Group’s capital position. The sale of Generali US is a further step in the transformation of our Group and delivering against the goal of re-focusing on our core insurance business.”