Allianz and Generali plan to sell life insurance asset
Published : Friday, 29 May, 2020 at 10:58 PM Count : 188
Europe's two largest insurers are ready to sell billions of euros in life assets - a key deal to keep bankers busy amid the coronavirus epidemic
Allianz SE plans to transfer about 9 billion euros (9 9.9 billion) of life insurance assets to countries including Italy, people familiar with the matter said. The German company is working with Morgan Stanley to review the portfolio, the public said, adding that the information is personal and does not identify them.
The potential sale came at the end of an Allianz review of European life business outside its market, which could bring in around 500 million euros (US $ 49.2 million), people said. Any diversion could help Allianz free up regulatory capital in a coronavirus crisis.
Italy's Asicurazioni General Spa has decided to move forward by disposing of a French life insurance portfolio, which remains a landmark deal for French industry, people said. According to the public, financial services expert Fenchchurch Advisory has chosen to help with this potential sale, which according to the public could involve 1 billion to 2 billion euros (US $ 1.1 billion and US $ 2.2 billion).
Generally is considering selling a so-called back-book portfolio linked to savings products in its life insurance unit and has previously asked banks to play a role in the deal, Bloomberg News reported in January, Bloomberg News reported in January.
The integration of Club-Life books will drive M&A activities in the insurance sector in Western Europe, including France and the Netherlands, this year, PwC said in its 2020 industry outlook. According to Bloomberg's compiled data collection, the impact of dealmaking COVID-19 on the sector has been strongly demonstrated at a time when the volume of compromises and acquisitions in the region has declined by 23%.
The back book market has been growing in recent years. The main markets in Europe, Germany and Ireland grew by US $ 40 billion ($ 9 billion) between 2016 and 201 to ৮ 407 billion (US $ 6 per year) by Phoenix Group Holdings PLC, one of the largest life-saving consolidators.
According to the public, Allianz and General Divestments may attract interest from expert consolidators. No final decision has been made, and according to the public, there is no guarantee that this decision will lead to a transaction. Representatives from Allianz, Generally, Morgan Stanley and the French Church declined to comment.-Internet