Generali unloads German pensions for €0.3bn gain & mild solvency boost
Generali completed disposal of its discontinued German pension book for an expected after-tax gain of € 0.3 billion and a 1 percentage point boost to the group Solvency II ratio.
In the deal, Generali sold Generali Deutschland Pensionskasse AG (GDPK) to pension fund manager Frankfurter Leben following approval from German supervisory authorities. Generali Deutschland will continue to service the contracts and customers for at least one year to smooth the transition.
The asset, carrying around 150,000 policies, was founded in 2002 as a specialised pension company. Its portfolio was mainly underwritten between 2003 and 2005. New business was discontinued at the end of 2016.
Generali said the deal aligns with its “Lifetime Partner 24: Driving Growth” strategy to enhance the profile and profitability of the life business. It will generate an after-tax gain of approximately €0.3 billion at the consolidated level to be recorded in Q4 2023, with a positive impact on the reported net result and no impact on the adjusted net result.
The transaction will add approximately 10 p.p. to the German and 1 p.p. to the Group Solvency II positions respectively.
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