Eurovita Group is set to acquire Italian life insurer Pramerica Life for an undisclosed sum.
The independent life insurance group was formed by international private equity firm Cinven in 2017 through the merger of Old Mutual Wealth Italy, Ergo Previdenza and Eurovita Assicurazioni.
Eurovita has agreed to buy Pramerica from US-based insurer Prudential Financial.
The aim is to expand its distribution channels especially within the life insurance segment.
To date, Eurovita has a network of over 11,000 financial advisers, more than 2,500 bank branches and around 100 agents and brokers.
Following the acquisition, Eurovita will have around €17.5bn (£14.8bn, $19.5bn) in gross reserves and €2bn in gross written premiums.
Market consolidation strategy
Erik Stattin, group chief executive of Eurovita, said: “Pramerica is a highly regarded niche-player in the Italian insurance sector with very specific and interesting capabilities and a product range that will contribute to further accelerate the growth strategy of Eurovita”.
Eugenio Preve, senior principal of Cinven, said: “The acquisition of Pramerica by Eurovita is a clear example of the market consolidation strategy that Cinven pursues in order to create value through its portfolio companies.
“It also enhances Eurovita’s capabilities in providing customers and distributors with attractive products.
“Eurovita has now made a new step to consolidate its leadership in the Italian life insurance industry.”
The acquisition is subject to approval by Italian insurance regulator Istituto per la Vigilanza sulle Assicurazioni (Ivass) and by the Italian Antitrust Authority.