Agreements reached for the purchase of the minority stake in Cattolica Life from BPVi in receivership and for the contextual sale of 100% of the same company to Monument Re Group
Verona, 10 December 2019. Cattolica Assicurazioni informs that two binding agreements have been signed for the purchase of a 40% stake in Cattolica Life1 from Banca Popolare di Vicenza in receivership and for the contextual sale of 100% of the same company to Monument Re Group.
The closing of the transaction is envisaged by the end of the first quarter of 2020 and it is subject to the prior authorisation of the competent authorities.
The sale of Cattolica Life fits into the broader context of rationalisation and simplification of the Cattolica Group and it doesn’t materially affect the Solvency II ratio. The impact on the Group’s net profit, including the FY2019 result, is estimated, as of today, in a loss slightly above €5m, almost entirely attributed to the current financial year and it will enable a growth of the operating result of about €4m, per year, in the forthcoming financial years, thanks to cost reduction.
NatWest Markets acted as financial advisor to Cattolica in regards to the transaction.
Gianni, Origoni, Grippo & Partners law firm acted as legal advisor to Cattolica in regards to the transaction.
1 Cattolica Life is a company of the Cattolica Assicurazioni Group with headquarters in Dublin, Ireland, currently in run-off after the start, in 2017, of the insolvency proceedings in respect of Banca Popolare di Vicenza. The company, with actual masses of about €200m, was established as a joint venture in the context of the business partnership with Banca Popolare di Vicenza.