Italian insurer Generali has sold the life run-off portfolio of its UK branch to a subsidiary of health and life insurance firm Reinsurance Group of America.
The financial terms of the deal were not disclosed.
The portfolio consists of mainly annuity policies with approximate “best estimates liabilities” of €680m (£599m, $760.8m), which is the present value of expected future cashflows.
Cristiano Borean, Generali group chief financial officer, said: “Thanks to the sale of this run-off portfolio, we are going to release resources that we can reinvest in new opportunities.
“The operation also further improves the operating efficiency of our UK branch.”
Features of the deal
As part of the deal, Generali has signed a reinsurance contract which will cover all claims arising from most of the legacy business. The remaining minor portion will be transferred directly to Reinsurance Group of America.
The portfolio transfer of the whole identified book of business will take place following regulatory approval.
Earlier this year Generali announced it had stopped taking any new business for its regular premium, unit-linked and life assurance products Vision and Choice from financial advice firms in the United Arab Emirates.