Italian financial services major UniCredit has initiated the process to fully internalise its life bancassurance business within the country.
This move involves terminating existing partnerships with CNP Assurances and Allianz, leading to UniCredit acquiring 100% ownership of CNP UniCredit Vita (CUV) and UniCredit Allianz Vita (UAV).
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In 2023, these entities amassed approximately €7.5bn ($8.4bn) in gross written premiums and held technical reserves close to €44.9bn.
The life bancassurance sector in Italy has been a significant contributor to UniCredit’s revenue, generating around €500m in distribution fees, which represents 12% of the total fees in Italy for 2023.
Additionally, the bank’s shareholdings in the two companies yielded roughly €85m in profits.
The internalisation is expected to enhance UniCredit’s growth in a commission-driven market, improve business synergies and elevate customer service standards.
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By GlobalDataUniCredit said that “the internalisation of life bancassurance factories in Italy will allow UniCredit to accelerate growth in a commission-focused sector with attractive profitability where UniCredit is already one of the leading players, extract business synergies and further strengthen the service level offered to customers.”
The non-life bancassurance operations with Allianz will remain unchanged as per the terms set in January 2022.
The UniCredit board of directors has approved the termination of the shareholders’ agreements with both CNP Assurances and Allianz.
This includes exercising the call option to acquire CNP Assurances’ 51% stake in CUV and Allianz’s 50% stake in UAV.
The valuation for these acquisitions will follow agreed methodologies, with an independent expert certifying the purchase price.
Both CUV and UAV are expected to merge post-acquisition, continuing operations with the current set-up and transitional support from the existing insurance partners.
The completion of these transactions is contingent upon regulatory approvals and is anticipated in 2025.
Post-closure, CUV and UAV will be managed under UniCredit’s newly established bancassurance division, headed by Alessandro Santoliquido, who oversees the group’s insurance business.
In other Italian insurance industry news this week, Berkshire Hathaway Specialty Insurance expanded its European presence by opening a new office in Milan, Italy, with Leonardo Castrichino appointed as the country manager to lead its Italian operations.
