Generali has signed an agreement to sell the life run-off portfolio of it British branch, worth 680 million EUR (758.82 million USD) by the end of 2018, to Reinsurance Group of America (RGA [4]). Thanks to this transaction, the amount of which has not been disclosed, Generali's solvency will improve by one point.
In less than a year, the Italian insurer cedes its second life portfolio. In April 2019, Generali finalized the sale of Generali Leben [5] in favour of Viridium. The transaction included 89.9% of the capital of the German subsidiary. This transaction enabled Generali to improve its solvency by 2.6 points.
According to Moody's rating agency, the European life insurance market is expecting many mergers and acquisitions. The solvency of insurers under pressure and the low interest rates lead to the market concentration.
In 2018, two major merger-acquisition operations took place in the UK: the acquisition of Rothesay Life by Prudential [6] for GBP 12 billion (16.8 billion USD) and the sale of Standard Life Aberdeen to Phoenix Group for 3.28 billion GBP (4.25 billion USD).