Deals: Generali Takes a Stake in Cattolica Group

Here’s the official word from Generali;

The Board of Directors of Assicurazioni Generali, chaired by Gabriele Galateri di Genola, and Cattolica’s Board of Directors, chaired by Paolo Bedoni, approved the launch of a strategic partnership between the Generali Group and the Cattolica Group.

The strategic partnership is based on 3 pillars:
• industrial and commercial agreements – capable of immediately generating
opportunities and direct benefits for the two groups in 4 strategic business
areas: Asset Management, Internet of Things, Health Business and
Reinsurance. The execution of these agreements is fundamental in creating the
strategic partnership;
• share capital increase – with Generali’s commitment to subscribe a share
capital increase, without option rights, for € 300 million, subject to the approval
of the transformation into a joint-stock company (Società per Azioni) and certain
statutory amendments relevant to the governance structure of Cattolica.
Generali would become a major shareholder with a 24.4% stake. Generali will
also have the option to subscribe, on a pro-rata basis, the subsequent capital
increase, optioned for all shareholders, for an additional maximum amount of €
200 million;
• legal structure and governance – the agreement requires (1) Cattolica’s
transformation from a cooperative entity to a joint-stock company (Società per
Azioni), with effect from 1 April 2021, and (2) the adoption of statutory
amendments to protect the investment (in force until the transformation’s
effective date) as binding conditions for Generali becoming a major shareholder
of Cattolica.

Commercial agreements

The partnership envisages four business and commercial initiatives that represent
important profitable growth opportunities in services for customers in the P&C segment
and in the asset management segment, leveraging Generali’s competencies and
capabilities in investment management, digital innovation and health services. This will
allow Cattolica to expand and improve the offer to its customers with new and innovative ancillary services.
In particular, the agreements, which have a multi-year duration, provide for the following:

Asset Management: management by Generali Asset Management of a portion of
Cattolica’s investment portfolio, with the objective of increasing efficiency, leveraging on
specialised competencies and expertise;

Internet of Things: Generali’s offer to Cattolica customers of the innovative IOT platform
developed by Generali Jeniot to grow the telematics business for cars, homes, pets and
companies;

Health Business: extension of Generali Welion’s innovative health services, currently
not part of Cattolica’s product offer, to Cattolica’s customers and the outsourcing to
Generali Welion part of Cattolica’s settlement and assistance services;

Reinsurance: collaboration agreement between Cattolica and Generali, with Generali as
the main partner regarding a portion of risks to be reinsured.

Paolo Bedoni, Chairman of Cattolica Assicurazioni, and Carlo Ferraresi, General
Manager declared: “The strategic partnership with the Generali Group represents an
important project in Cattolica’s history which, with the objective of maintaining the focus
on local territories, customers and employees, offers an important opportunity to create
value for members and shareholders.

Through this agreement, the Cattolica Group will provide benefits for its customers in
terms of new and innovative services from the Generali Group, and will be able to
reinforce its capital position.”