MILAN (Reuters) - Generali (BIT:GASI) said on Thursday it expected to book an after-tax gain of around 300 million euros ($329 million) in the fourth quarter of the year after selling its German specialised pension unit to Fosun-backed Frankfurter Leben.
Italy's top insurer had completed the sale, announced in May, of its unit Generali Deutschland Pensionskasse (GDPK) after gaining the approval of the German financial regulator BaFin and
the German antitrust authorities, it said in a statement.
The transaction will allow Generali to improve the profitability of its life business and free up capital.
Generali confirmed that the sale would add one percentage point to its group solvency position and around 10 percentage points to that of its German holding company, Generali Deutschland AG.
The company also sees a positive impact on the reported net result from the sale but no impact on the adjusted figure.
Frankfurter Leben paid a token price for the acquisition, a source close to the deal had said.
GDPK, with 150,000 policies, was founded in 2002 as a specialised pension company. Its portfolio was mainly written in 2003-2005, and new business ceased at the end of 2016.
Frankfurter Leben Group, majority-owned by Fosun International, specialises in buying life insurance portfolios from other insurers and continuing to manage them.
Under the agreement, Generali Deutschland AG will maintain all services for GDPK and its customers for at least one year to ensure a smooth transition. ($1 = 0.9126 euros)