Assicurazioni Generali SpA (G.MI) said on Wednesday it agreed to sell Generali Nederland NV to Dutch insurance group ASR Nederland NV (ASRNL.AE) for 143 million euros ($171.2 million). Generali said the sale is expected to generate a one-off net loss of about EUR270 million.
The initial consideration of EUR143 million will be subject to "certain customary adjustments following closing," Generali said, adding that the transaction will add about 1.6 percentage points to the group's regulatory solvency II ratio, a measure of financial strength.
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The company, based in Trieste, Italy, said that the sale of its 99% stake in the Dutch business, which in 2016 contributed about EUR9 million to the group's operating results of EUR4.83 billion, is part of its strategy to optimize its geographical presence, increase operational efficiency and improve capital allocation.
"We are well on track in executing our strategy and we are confident to generate at least EUR1 billion of cash," Frederic de Courtois, group CEO Global Business Lines & International, said.
Generali expects the deal, which is subject to the approval of competition and regulatory authorities, to be completed in the first six months of 2018.
BNP Paribas Corporate Finance and KPMG Corporate Finance acted as financial advisors to Generali Group, Linklaters LLP acted as legal advisor.
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(END) Dow Jones Newswires
September 13, 2017 07:26 ET (11:26 GMT)