TRIESTE (dpa-AFX) - Italian insurer Assicurazioni Generali S.p.A. (ARZGY.PK) Monday said it will sell its entire stake in Swiss private bank BSI, to Banco BTG Pactual for CHF 1.5 billion. The company will pay CHF 1.2 billion in cash and CHF 300 million in BTG units listed on the Sao Paulo Stock Exchange.
The sale is expected to add nearly 9 percentage points to Generali's solvency 1 ratio, on a pro-forma basis. However, it might generate a minor net loss in the region of 0.1 billion euros, on completion. The disposal is likely to reduce Generali's non-insurance activities and is expected to be a positive factor for rating agency evaluations.
Upon closing of the sale, Generali will reach a total of 3.7 billion euros in disposals of non-core assets, thereby reducing both the debt and the leverage position of the company.
Generali Group CEO, Mario Greco, commented: '...With this transaction we exceed our Solvency 1 target, restoring the capital base of Generali over a year in advance of our 2015 plan.This sale completes the disposal process aimed at strengthening the capital base of the Group, resolving a key issue for us, and allowing Generali to focus on driving forward with its core insurance business.'
The transaction is expected to be completed by the first half of 2015.
Copyright RTT News/dpa-AFX