Recent hikes in interest rates as central banks look to tackle soaring inflation have impacted a plan by Assicurazioni Generali to offload up to €20 billion ($21.87bn) of insurance liabilities through a sale to private equity-backed companies, according to a report by Reuters.
Recent hikes in interest rates as central banks look to tackle soaring inflation have impacted a plan by Assicurazioni Generali (Generali) to offload up to €20 billion ($21.87bn) of insurance liabilities through a sale to private equity-backed companies, according to a report by Reuters.
The report cites three unnamed sources familiar with the matter as confirming that Generali has been working with Goldman Sachs to sound out buyers for the portfolio, including Portugal-based GamaLife, backed by Apax Partners, and Bermuda-based Athora, which is backed by Apollo Global Management. Spain-based MedVida, owned by Paul Singer’s hedge fund Elliott Management, has also shown interest.
But interest rate increases have complicated the deal raising concerns among potential buyers over the value of the portfolio.
Generali may be open to a reinsurance arrangement as an alternative to a sale, according to one of Reuters’ sources.
