Generali has announced its exit from the Philippines, with an agreement to sell its 100% stake in the local business to the Insular Life Assurance Company.
Financial details regarding the sale of Generali Life Assurance Philippines remain undisclosed.
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This deal is part of Generali’s Lifetime Partner 24: Driving Growth strategy, which highlights sustainable growth and a focus on markets where Generali is already established.
Generali expects the sale to have an “immaterial impact” on its Solvency II ratio.
However, the company is projected to incur a capital loss of around €20m ($21.1m) after taxes and minority interests owing to the divestiture.
The deal will not affect its adjusted net result.
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By GlobalDataThe transaction’s completion is set for H1 2025, contingent on the fulfilment of regulatory approvals.
PwC was the financial advisor for the deal and offered vendor assistance to Generali, while PJS Law (Dentons) was the legal advisor.
The acquisition is in line with Insular Life’s strategy to strengthen its market position and extend its corporate product offerings.
It is said to yield business synergies as well as bolster distribution capabilities.
Commenting on the deal, InLife executive chairperson Nina D Aguas said: “This acquisition is a proud moment for InLife as it demonstrates our capability and resolve to further expand and innovate while remaining steadfast to our mission of serving the insuring public.
“This also underscores InLife’s enduring strength as a 114-year-old proud Filipino company, highlighting our solid financial foundation, equity position and strong risk-based capital. As a homegrown company acquiring a foreign entity, we see this as a strategic step to cement our position as a leader in the life insurance industry.”
Generali Group reported a net result of €2.96bn for the nine-month period ending 30 September 2024, up 5% from €2.82bn in the previous year.
The growth was driven by a €58m net capital gain from the sale of TUA Assicurazioni in Q1 2024.
