By Anthony Shevlin

Assicurazioni Generali SpA (G.MI) said Thursday that it has agreed to sell 89.9% of Generali Leben in Germany to Viridium Gruppe, which itself is owned by London-based private-equity firm Cinven Group Ltd. and Hannover Rueck SE (HNR1.XE).

The Italian company said the transaction valued Generali Leben at up to 1 billion euros ($1.17 billion) and the total estimated cash-in is up to approximately EUR1.9 billion.

The transaction includes EUR125 million as earn-out and Viridium will reimburse EUR882 million of hybrid loans to the Generali group, said Generali.

Generali expects the transaction to improve its return on risk capital and lower its exposure to interest-rate risk.

The transaction will generate around EUR275 million at group level, said Generali.

Generali will have the possibility to invest in a minority stake in Viridium subject to the successful completion of due diligence, it said.

The transaction is expected to be signed soon, Generali said.

Write to Anthony Shevlin at anthony.shevlin@dowjones.com

(END) Dow Jones Newswires

July 05, 2018 02:36 ET (06:36 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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