Generali agrees to pay $260m to settle dispute over BSI

Italian insurer  Generali has reached a settlement agreement with Brazillian bank  BTG Pactual, ending the arbitration for the sale of the insurer’s Swiss private banking unit BSI.

The arbitration started in 2016 following the completion of the sale of BSI by Generali Participations Netherlands to Banco BTG Pactual in September 2015 and concerned mutual claims and indemnification requests pursuant to the sale and purchase agreement.

Generali said it would pay BTG Pactual CHF 245 million ($260 million) as indemnity and sale price adjustment, the termination of the arbitration and a waiver of the mutual claims and indemnification requests, without any admission of liability or wrongdoing.

The net impact on the Generali Group’s first half 2020 results amounts to CHF 195 million, equivalent to about €183 million, after taking into account pre-existing provisions to cover legal costs.