Assicurazioni Generali SpA has agreed to buy Conning Holdings Ltd. as part of its plan to expand in asset management.
(Bloomberg) — Assicurazioni Generali SpA has agreed to buy Conning Holdings Ltd. as part of its plan to expand in asset management.
Generali is acquiring Conning and its affiliates, Italy’s largest insurer said in a statement Thursday, confirming an earlier Bloomberg report.
No upfront cash consideration is payable by Generali, according to the statement. Instead, Cathay Life, a unit of Cathay Financial Holding Co. and the owner of Conning, will take a 16.75% stake in Generali Investments Holding SpA, which comprises the bulk of Generali’s asset management activities. Generali and Cathay Life will enter into a long-term partnership for a minimum of 10 years as part of the accord.
With this transaction, “we will enhance our asset management capabilities, strengthen our footprint in the key US and Asian markets, and create a platform to deliver on our broader asset management strategic ambitions in order to maximize value for all stakeholders,” Generali Chief Executive Officer Philippe Donnet said.
Generali is seeking to improve profitability by focusing on more lucrative assets and expanding in asset management as well as casualty and property insurance. Last month, the firm agreed to acquire a group of European businesses from US insurer Liberty Mutual Holding Co. for €2.3 billion ($2.5 billion).
The group’s Generali Investments asset-management arm generates less than 15% of overall operating profit and is one of Donnet’s focuses for growth. Since 2017, Generali has bought investment boutiques including France’s Sycomore Asset Management to boost offerings of environmental and socially-responsible funds, and the London-based alternative asset management unit of Bank of America, Lumyna.
Conning had $157 billion of assets under management at the end of March, according to the statement. The deal will boost its Generali’s total AUM to $845 billion.
Generali shares declined as much as 2.8% after the initial Bloomberg report and were down 2.5% at €18.45 as of 4:43 pm CET.
(Updates with details, CEO comment starting from third paragraph.)
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