Terms and conditions of the transaction are in line with the announcement of the sale published in July 2018 with a total evaluation for 100% of GENERALI Leben of EUR 1 billion. In addition, EUR 882 million of loans have been reimbursed to GENERALI Group.
VIRIDIUM has received all required approvals from regulatory bodies and competition authorities. As part of the transaction, GENERALI maintains a 10.1% stake in GENERALI Leben and a seat in the supervisory board.
"Germany is for us a key market where we want to grow. With this transaction, we complete the industrial transformation of GENERALI Deutschland. We confirm our position as the second largest retail insurer in the German market and we reinforce our leadership in the Life Unit Linked and Protection businesses. The resources freed up thanks to the sale of GENERALI Leben will be redeployed to support growth", the Group's CEO, Philippe DONNET, stated.
According to the Italian group's statement at the time of the initial agreement, the transaction will improve the return on risk capital and will mitigate the Group's exposure to interest rate risk. The transaction will add approximately 43 p.p. to the German and 2.6 p.p. to the Group Solvency II positions respectively, generating a capital gain (gross of tax) of approximately EUR 275 million at Group level.
GENERALI Leben represents approximately 36% of GENERALI Deutschland's Life reserves, including health, and is mainly focused on the guaranteed traditional policy business. It manages 4 million policies with traditional reserves amounting to EUR 37.1 billion and includes several portfolios of formerly merged companies. After the transaction, GENERALI Deutschland will remain a leader in the Unit-Linked, Hybrid and Protection business and will maintain its position as the second largest German insurer, through the other business units of the Group.