Luigi LUBELLI, Group Chief Financial Officer said: "This transaction, which attracted a high level of interest from the market, is another step forward in our efforts to optimize the Group's capital allocation. It allows GENERALI to release capital, reduce costs, and remove the potential source of volatility inherent in such long-tail business lines. Further, it shows that GENERALI is committed to reallocate its capital where it can best be used, going beyond the current global review of its markets."
Frederic de COURTOIS, Group CEO Global Business Lines & International commented: "This deal is instrumental in further increasing the operational efficiency of GENERALI. The Group is committed to the UK business through our GENERALI Global Corporate & Commercial unit that develops Property & Casualty business and insurance services for mid- to large-sized companies, GENERALI Global Health with its coordination center in London and our UK Employee Benefits business, part of the GENERALI Employee Benefits network, that provides coverage to individuals working in firms ranging from mid-sized companies to global conglomerates."
As an initial step, GENERALI has signed a reinsurance contract that covers all claims payments arising from that legacy business, to be followed by a legal portfolio transfer which remains conditional upon the approval of the competent authorities.
As part of the overall transaction, GENERALI has also agreed to reinsure the Non-Life run-off portfolio of its US branch with the same counterparty.
The transaction further strengthens the Group's Economic Solvency capital position.