Generali has signed an agreement to sell the life run-off portfolio of its UK Branch to a subsidiary of Reinsurance Group of America Inc., the St. Louis, Mo.-based life and health reinsurance company.
The run-off portfolio, which consists of mainly annuity business, corresponds to approximately €680 million in best-estimate liabilities as at year end 2018, said Generali, which didn’t reveal the financial details of the transaction.
This operation further strengthens Generali Group’s capital position with an estimated increase of around 1 percentage point on the Group Regulatory Solvency Ratio and allows to concentrate on the core business.
“Thanks to the sale of this run-off portfolio, we are going to release resources that we can reinvest in new opportunities. The operation also further improves the operating efficiency of our UK Branch,” said Generali Group’s Chief Financial Officer Cristiano Borean.
As part of the overall transaction, Generali has signed a reinsurance contract which, subject to completion of collateral settlement procedures, will be covering all claims payments arising from most of that legacy business.
The portfolio transfer of the whole identified book of business will take place following the approval of the competent authorities.
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