Assicurazioni Generali SpA is close to selling its Deutschland Pensionskasse AG unit to a German firm controlled by Chinese conglomerate Fosun International Ltd, as the Italian insurer reviews its life operations in a bid to improve profitability.
Generali is preparing to sell the unit to Frankfurter Leben-Gruppe for a token price to free up capital and improve its solvency ratio, according to people with knowledge of the matter, who asked to not be named because the process is not public. The sale of the unit, which has about $2.5 billion of assets under management, is expected to be announced as soon as this month, they said.
A spokesman for Generali declined to comment. Representatives for Frankfurter Leben weren’t immediately available for comment.
Generali is seeking to improve profitability by focusing on more lucrative assets and it is selling non-core portfolios and life products. Chief Executive Officer Philippe Donnet in 2021 outlined plans to return as much as €5.6 billion ($6.2 billion) in dividends to shareholders by 2024 while expanding in non-life insurance and asset management.
–With assistance from Steven Arons.
Photograph: An Assicurazioni Generali SpA logo sits above an entrance to their offices in Rome, Italy, on Friday, Jan. 27, 2017. Photo credit: Alessia Pierdomenico/Bloomberg
Topics Germany
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