Reinsurance Group of America to acquire Generali's UK life legacy business

Italian insurance group Generali has entered into an agreement for the sale of the life run-off portfolio of its UK branch with a subsidiary of Reinsurance Group of America (RGA).

The portfolio consists of mainly annuity business.

Generali said this operation further strengthens its capital position with an estimated increase of around 1 percentage point on the group regulatory solvency ratio. It will allow the company to concentrate on the core business and free up resources to reinvest in new opportunities.

As part of the transaction, Generali has signed a reinsurance contract which, subject to completion of the customary collateral settlement procedures, will be covering all claims payments arising from most of that legacy business. The remaining minor portion will be transferred directly to the counterparty.

The portfolio transfer of the whole book of business will take place following the approval of the authorities.

Cristiano Borean, Generali Group chief financial officer, said: “Thanks to the sale of this run-off portfolio, we are going to release resources that we can reinvest in new opportunities. The operation also further improves the operating efficiency of our UK Branch."

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