Generali cedes its German life subsidiary Generali Leben to Viridium
Generali announced, on July 5, 2018, its intention to cede its German life subsidiary Generali Leben to Viridium, a specialist in the management of life insurance portfolios in Germany.
The transaction, which covers 89.9% of the company's capital, should amount to 1.9 billion EUR (2.21 billion USD). It will enable the Italian group to improve its solvency ratio by 2.6 points and generate a capital gain of 275 million EUR (320.58 million USD).
According to Giovanni Liverani, CEO of the German subsidiary Generali Deutschland, this initiative is considered as the final step in the recovery of the group's activity in Germany.
At the end of this transaction, the Italian group will remain the second largest local insurer in Germany. He will hold 10.1% of the company's ceded capital and will keep a seat on its board of directors.
Note that the portfolio put on sale has been placed in "run-off" in early October 2017. It includes four million contracts.
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