Generali sells Fata Danni to Cattolica for €179 mln

Trieste – The Generali Group signed today an agreement with Cattolica to sell 100% of the capital of Fata Assicurazioni Danni S.p.A. for a total gross consideration of €179 million.

The transaction allows the Group to strengthen its liquidity and capital positions further. The Solvency I ratio improves by 0.6 percentage point.

The consideration corresponds to an implied multiple of 15.5x on 2012 earnings and 1.4x on 2012 shareholders’ equity.

The Generali Group CEO, Mario Greco, said: “The sale of Fata, completed at attractive financial conditions, allows us to continue to strengthen the Group’s capital position and to reach €2.4 billion of proceeds from disposals since August 2012, 60% of the €4 billion target to 2015”.

Fata Assicurazioni operates historically in the business niche of agricultural risks through a distribution network of 171 agencies across Italy - many of which tied to ‘Consorzi Agrari’ (agricultural consortia). In 2012, Fata recorded a total premium income of €434 million and a net profit of approximately €12 million.
Following Fata disposal, the Generali Group will continue to operate in the Italian agricultural risk business through the Generali Italia network.

The closing of the transaction is subject to the necessary regulatory approvals. The price of the deal is subject to a potential adjustment on the basis of certain changes in balance sheet items which might occur by the closing date expected in the first half of 2014.

KPMG Corporate Finance acted as financial advisor and Norton Rose Fulbright as legal advisor to Generali.