GENERALI Group sells its Dutch operations to ASR Nederland for EUR 143 million

GENERALI Group has agreed to sell its Dutch operations to to Netherlands-based insurer A.S.R. Nederland, for a total consideration of about EUR 143 million, both companies have announced.

The Italian insurer said it has entered into a share purchase agreement to dispose its entire shareholding (98.56%) in GENERALI Nederland N.V., the transaction being part of its strategy to optimize its geographical presence, increase operational efficiency and improve capital allocation. The contribution of the Dutch business to Group's operating result was limited and equal to approx. EUR 9 million in 2016.

Frederic de COURTOIS, Group Ceo Global Business Lines & International commented: "With this transaction we reaffirm our commitment to the rebalancing of GENERALI Group's geographical presence across the world. After the closing in Guatemala and the recent agreement to dispose our operations in Colombia and Panama, this transaction represents a significant step to pursue the strategy announced during our last Investor Day. We are well on track in executing our strategy and we are confident to generate at least EUR 1 billion of cash".

Jos BAETEN, CEO of A.S.R. said the acquisition will strengthen the Dutch company's market position, both in the Life and the Non-Life segments, folowing its strategy to grow through targeted bolt-on acquisitions.

As part of the transaction, the GENERALI Group will cease to provide any reinsurance support to GENERALI Nederland's insurance subsidiaries resulting in the withdrawal by the Dutch life insurance company of the reinsured portfolio with Assicurazioni GENERALI S.p.A..

GENERALI Group will receive, as initial consideration, EUR 143 million in cash. The consideration will be subject to certain customary adjustments following closing. The transaction will lead to a positive impact to the Group's Solvency position by adding approx. 1.6 percentage points to the Group's Regulatory Solvency II ratio and it is expected to generate a one-off net loss of approx. EUR 270 million. On the A.S.R. side, expects the total capital commitment (including acquisition price) is expected to amount to approximately EUR 200 million. The difference represents the impact on A.S.R.'s capital position following the intended capital contribution in Generali Nederland.

The transaction is subject to, inter alia, the approval of the relevant competition and regulatory authorities and is expected to be finalized in the first half of 2018.

BNP Paribas Corporate Finance and KPMG Corporate Finance acted as financial advisors to GENERALI Group, Linklaters LLP acted as legal advisor.

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