Generali reaches agreement to dispose of Generali Deutschland Pensionskasse to Frankfurter Leben
04 May 2023 - 08:05
Milan – Generali has reached an agreement with Frankfurter Leben for the disposal of Generali Deutschland Pensionskasse AG (GDPK).
The transaction is aligned with Generali’s “Lifetime Partner 24: Driving Growth” strategy, to enhance its earnings profile through continuous improvement in the profile and profitability of the Life business, reducing capital intensity and enhancing operating results.
The transaction will add approximately 10 p.p. to the German and 1 p.p. to the Group Solvency II positions respectively.
In 2019 Generali was the industry first mover to de-risk the Savings business, with the landmark disposal of a majority stake in Generali Leben, improving the return on risk capital and mitigating the Group’s exposure to interest rate risk.
GDPK, with circa 2.8 billion euros in capital reserves and 150,000 policies, was founded in 2002 as a specialised pension company. Its portfolio was mainly written in the years 2003-2005. At the end of 2016, new business in GDPK ceased.
The transaction is expected to be completed by the end of 2023, subject to the approval of the German Federal Financial Supervisory Authority (BaFin) and the responsible local antitrust authorities.
Goldman Sachs acted as financial advisor and Hengeler Mueller acted as legal advisor for the transaction.