Assicurazioni Generali announced that it has reached an agreement to sell its Irish and Northern Irish property and casualty (P&C) insurance operations to Zurich Insurance Group for €337 million in cash.
The operations being sold are carried out through the Irish and UK (Northern Ireland) branches of Generali Spain under the RedClick brand. The buyer entities are Zurich Insurance Europe AG and Zurich Insurance Company Ltd, UK Branch, both part of Zurich Insurance Group.
Under the terms of the transaction, the sale price is €337 million in cash and is subject to customary completion adjustments. Generali Spain will retain an additional €51 million of excess capital currently allocated to the Irish P&C operations.
The divestiture is aligned with Generali’s strategy to focus on core insurance markets where the company has greater scale and a stronger competitive position. The move also supports the company’s broader “Lifetime Partner 27: Driving Excellence” strategic plan.
Generali said the transaction is expected to generate a capital gain for the group upon completion. The deal is also expected to have an immaterial impact on the company’s adjusted earnings per share while increasing the group’s Solvency II ratio by around one percentage point.
The sale remains subject to regulatory approvals and other required authorizations from relevant authorities.
BofA Securities served as the sole financial advisor to Generali on the transaction, while Clifford Chance LLP and A&L Goodbody LLP acted as legal advisors.
The Irish and Northern Irish P&C operations contributed gross written premiums of €167 million and an operating result of €17 million to the Generali Group.
