Generali Deutschland to restructure and streamline operations
Generali Deutschland, a German primary insurer part of Generali Group, is in the process of restructuring its business by consolidating 10 of its product groups into one and by putting its life business Generali Leben into run-off.
This initiative is part of the insurer's aim to streamline its operating performance and create long-term value with an improve distribution strategy.
“Today’s announcement is in line with Generali Group’s key strategic objectives: to improve operating performance and to create long-term value," said Generali Group CEO Philippe Donnet. " It accelerates Generali’s transformation in Germany, one of the Group’s core markets. These actions will simplify processes, consolidate our distribution network, increase our product range and strengthen the Generali brand. Further, the run-off of Generali Leben will free up resources that will allow us to capture new growth opportunities in the German market.”
The new platform aims to consolidate all technical and product capabilities for property/casualty, health and life.
Generali is also putting Generali Leben into run-off, which it believe will grant high security for all existing life contracts and substantially mitigate Generali's exposure to interest rate risk.
Furthermore, the decision is expected to improve the return on risk capital and contribute to 1.7 percentage point increase in Generali's economic solvency and 26 percentage points to the solvency of Generali Deutschland.
Generali Deutschland has planned to start the run-off during the first quarter of 2018. This reorganisation does not exclude a potential future disposal of the Generali Leben portfolio, the company said.
Giovanni Liverani, CEO of Generali Duetschland, commented: “This is the next step towards excellence for Generali Deutschland. This next phase will accelerate our growth story, increase profitability, reduce capital absorption and strengthen our competitive position.
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