Generali to Sell Belgian Operations for EUR540 Million

   By Pietro Lombardi 
 

Assicurazioni Generali SpA (G.MI) said Wednesday evening that it will sell its Belgian operations to Athora Holding Ltd for 540 million euros ($668.3 million).

The Italian insurer reached a binding agreement with its counterpart to sell its entire stake in Generali Belgium SA, which focuses on the life segment.

The sale should result in a capital gain of roughly EUR150 million and is expected to add about 2.6 percentage points to the group's Solvency II ratio, a measure of financial strength.

This is the latest in a string of sales that are part of Generali's plan to rework its geographical presence by leaving less-profitable markets to focus on core ones. The Trieste-based insurer has previously announced sales of operations in Guatemala, Panama, Colombia, the Netherlands and Ireland.

"The total value of the deals concluded and those already announced, still subject to regulatory approvals, is over EUR1.1 billion exceeding our initial target of EUR1 billion. We will continue to implement this on-going initiative with discipline over the coming months," Frederic de Courtois, group CEO global business lines & international said in a statement.

The deal should be completed in the second half of the year and is subject to regulatory approvals.

Generali will remain in Belgium through its Global Business Lines and its Europ Assistance operations.

Write to Pietro Lombardi at [e-mail]

(END) Dow Jones Newswires

April 19, 2018 02:24 ET (06:24 GMT)

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