Generali completes sale of US business to Scor for $910 million

MILAN Tue Oct 1, 2013 12:51pm EDT

The emblem of Italy's insurer Assicurazioni Generali is pictured in downtown Rome, May 13, 2013. REUTERS/Stefano Rellandini

The emblem of Italy's insurer Assicurazioni Generali is pictured in downtown Rome, May 13, 2013.

Credit: Reuters/Stefano Rellandini

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MILAN (Reuters) - Assicurazioni Generali (GASI.MI), Italy's biggest insurer, said on Tuesday it had completed the sale of its U.S. life reinsurance business to France's Scor (SCOR.PA) for total gross proceeds expected to be $910 million.

In June, Generali said it had agreed to sell the assets to Scor for $920 million.

The deal is part of Generali's strategy to dispose of non-core assets to shore up capital.

Earlier this year, Generali's chief executive Mario Greco pledged to raise 4 billion euros ($5.41 billion) from non-core asset sales by 2015.

Generali said in a statement it had received a cash component of $779 million on Tuesday, adding $131 million of cash collateral was expected to be completed on Wednesday.

The deal corresponded to an implied multiple of 15 times 2012 earnings, Generali said.

($1 = 0.7393 euros)

(Reporting by Stephen Jewkes)

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