Generali Group has reached an agreement to sell its property and casualty insurance business in Ireland and Northern Ireland, which is carried out through Generali Spain Ireland and UK (Northern Ireland) branches under the RedClick brand, to Zurich Insurance Europe AG and Zurich Insurance Company Ltd, UK Branch, part of Zurich Insurance Group, for €337 million in cash.
Generali noted that the transaction is consistent with its focus on the core insurance market, where the company already has significant scale and leadership, and complements its “Partners for Life 27: Driving Excellence” strategic plan.
The sale should generate capital gains and be finalized upon completion, the company said.
This is expected to have a negligible impact on Generali Group’s adjusted earnings per share and is expected to have a positive contribution of approximately 1 percentage point to the group’s Solvency II ratio.
Generali Spain will reportedly retain a further €51m of excess capital currently allocated to the associated Irish property and casualty insurance business.
BofA Securities served as the exclusive financial advisor to Generali Group for this transaction, with Clifford Chance LLP and A&L Goodbody LLP serving as legal advisors.
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