Allianz buys profitable P&C business Tua from Generali in all-cash deal
European insurance giant Allianz is buying property and casualty (P&C) business Tua Assicurazioni from Generali in a €280 million cash deal that will increase its market share in Italy.
Generali has reached an agreement with Allianz for the disposal of Tua, which has a “profitable” P&C insurance portfolio with overall gross written premiums of about €280 million in 2022, mainly managed via a distribution network of almost 500 agents.
Generali said the transaction is aligned with the implementation of the Group’s “Lifetime Partner 24: Driving Growth” strategy in Italy to pursue profitable growth, reduce complexity with the aim of making its operating machine more efficient and to increase P&C diversification.
Earlier this month, Generali revealed that it has hired Giulio Terzariol, Allianz’s chief financial officer (CFO) and a 20-year company veteran, for the role of CEO of insurance, effective from January 2024. Allianz has agreed to release Terzariol from his mandate as of December 31, 2023.
Formerly part of Cattolica Assicurazioni, Tua is an insurance subsidiary of the group focused on P&C business in the Italian market. The company primarily operates in the motor business, representing c.60% of GWPs generated in 2022.
The total price for the deal is subject to certain adjustments in line with the market practice for this type of transaction, Generali noted. The transaction will add approximately 1 p.p. to the Group Solvency II position and will have negligible impact on the EPS.
The acquisition is expected to be completed by the first quarter of 2024, subject to regulatory approvals.
Giacomo Campora, CEO of Allianz SpA, said: "The acquisition of Tua Assicurazioni perfectly fits within our strategy, growing our footprint in P/C with a focus on retail and SMEs. Since 2014 we have been successfully integrating three large groups of professional agents (Milano, SASA and recently Aviva), thanks to the depth and breadth of our products and the modern and efficient technical platform. We are confident that the new agents and their clients will benefit from joining Allianz."
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