Regarding the approval of candidatures for members of the Supervisory Board

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Bloomberg

Generali retains dominance of Italy with $ 1.4 billion contract with Cattolica

(Bloomberg) – Italy’s largest insurer Assicurazioni Generali SpA has launched a € 1.2 billion ($ 1.4 billion) offer to buy all the shares it does not already own in small rival Societa Cattolica di Assicurazioni, as part of a strategy to consolidate its already-Generali, which owns an approximate 24% stake in the company, is offering investors 6.75 euros per Cattolica share in an all-cash transaction, said the insurer in a statement Monday. The offer represents a 15% premium on the last closing price and values ​​the smaller rival at 1.5 billion euros. Generali reorganized its leadership earlier this year to focus on growing its profitability. The deal comes on top of a wave of deals in the domestic insurance sector that totaled more than € 10 billion last year, according to data compiled by Bloomberg. “The acquisition would allow Generali to become the leader in the non-life insurance market. and to strengthen its presence in the life market, ”the insurer said in a statement. The transaction is fully aligned with the “business plan’s disciplined approach to M&A and its commitment to deliver profitable growth and create value for clients and shareholders.” Cattolica rose 14% in Milan after the news and 13% to 6.83 euros in 12:32 am, above the offer price. Generali stock rose, trading at 16.93 euros, Generali is also looking for cost reductions, digitization and expansion of more lucrative products and high margin insurance to increase profitability. CEO Philippe Donnet said last month the company would consider mid-size deals in the insurance company and asset management sectors. After the Cattolica transaction, the company has remaining cash on the 2.3 billion euros initially allocated for acquisitions.The insurer is in exclusive talks to buy non-life insurance business in Malaysia from AXA and Affin Bank. , people familiar with the matter said in April. In Europe, Generali was in the running to buy out the Polish activities of Aviva Plc, even though rival Allianz SE came out on top. Attolica is an insurance company with a market capitalization of almost 1.4 billion euros. The company agreed to turn into a joint stock company in July and has plans to raise 500 million euros. Assicurazioni Generali subscribed to 300 million euros, becoming the main shareholder in October. The second largest investor in Cattolica is a unit of Berkshire Hathaway Inc. of Warren Buffet, which has an approximate 9% stake. Zurich Insurance Group plans to sell some of the predominantly life insurance assets in Italy, while ‘Apollo Global Management plans to sell Italian life insurance company Amissima Vita. Cinven sells life insurance company Eurovita and Generalali’s board of directors unanimously approved the deal. The company said it sees annual synergies in excess of € 80 million pre-tax from the Cattolica merger, while total integration costs are estimated to be between € 150 million and € 200 million. Generalali’s offer was conditional on at least 66.7% of the shares. held after the bidding process, although she said she would explore the possibility of making acceptances if she held at least 50% plus one share. Rothschild & Co. ^, Bank of America Corp and Mediobanca SpA advise Generali on the transaction. (Updates with details of the transaction from the third paragraph. A previous version of this story has been corrected to change the value of Generali’s stake in Cattolica.) More stories like this are available on bloomberg .com Subscribe now to stay ahead with the most trusted source of business information. © 2021 Bloomberg LP

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