Italy's Assicurazioni Generali SpA (G.MI) has agreed to sell its Ireland-based Generali Paneurope for about 286 million euros ($336 million), it said Monday.
The Italian insurer, based in Trieste, said it will receive an initial EUR230 million from Life Company Consolidation Group.
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The transaction, subject to regulatory approval, should be completed by the first half of 2018, Assicurazioni Generali said.
Generali expects the sale to generate an after-tax gain of about EUR56 million and add 0.4 percentage point to the group's Solvency II ratio, a measure of financial strength.
"This transaction underscores our ongoing efforts to rationalize Generali's geographical footprint across the globe," said Frederic de Courtois, group CEO for Global Business Lines & International.
Last year Generali outlined a plan to leave less-profitable markets and focus on core areas. As part of the plan, it agreed to sell its Dutch business Generali Nederland NV earlier this year. Generali expects the plan to generate at least EUR1 billion of cash by 2018.
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(END) Dow Jones Newswires
December 18, 2017 05:15 ET (10:15 GMT)