Generali sells Guernsey & Irish subsidiaries to LCCG
Generali in July 2018 sold Generali Worldwide Insurance Company and Generali Link to Life Company Consolidation Group (LCCG).
LCCG is based in London and owns Utmost Wealth Solutions and Reliance Life. Utmost, a provider of international savings, protection and investment solutions into the UK, Continental Europe and Asia, operates from Ireland and the Isle of Man. It manages over £22bn of assets. Reliance Life is a London-based run-off manager of traditional books of life business in the UK. It has about 200,000 policies with assets of £1.9bn and soon may acquire Equitable Life, the oldest mutual life assurance company in the UK (300,000 policyholders and assets of £6.3bn), subject to a mid-2019 vote of Equitable’s policyholders.
Generali Worldwide is headquartered in Guernsey and specializes in offering life-insurance-based wealth management and employee benefit solutions to a global audience.
Generali Link is located in Ireland and was established as a shared service provider, particularly focused on fund and policy administration. The organization provides services to Generali Worldwide as well as to Generali PanEuro dac which was recently acquired by LCCG and renamed Utmost PanEurop dac.
The transactions are part of Generali’s strategy to “optimize its geographical footprint, increase its operational efficiency and improve capital allocation.”
No Impact For GEB Clients
In respect of group employee benefits, Generali Worldwide will remain active and act as the partner of GEB (Generali’s global employee benefits network) to serve its existing and future clients.
Furthermore, Generali Group will keep the health portfolio of Generali Worldwide in the Caribbean, to be managed by the global health division of Generali, Generali Global Health, based in London. This will allow Generali Group to keep up its presence in the region with the aim to further reinforce it.
Generali will receive about €409 million in base consideration, plus additionally up to €10 million of contingent consideration to be paid at completion, for the sale of its stakes in Generali Worldwide and Generali Link.
The contribution of Generali Worldwide to the consolidated operating result was about €35 million in 2017. The transaction will add about 0.9 percentage points to the group’s Regulatory Solvency II ratio.
The transaction should be finalized in Q1 2019.