By Lisa Jucca
MILAN, June 11 Generali SpA Chief
Executive Officer Mario Greco took another step towards meeting
a 4 billion euro ($5.3 billion)disposal target, agreeing to sell
out of two Mexican companies for $858 million.
The Italian insurer said it would bag a net capital gain of
500 million euros from the sale of 49 percent stakes in Seguros
Banorte Generali, the larger or the two assets, and Pensiones
Banorte Generali to Grupo Financiero Banorte, Mexico's No.4
Banorte already owned the remaining 51 percent in the pair.
"We seized Banorte's offer at the best conditions for us and
withdrew from a minority position which was no longer consistent
with Generali's current strategy," Greco said in a statement,
adding that Latin America, particurlarly Brazil, remained a very
The disposal will also add 4 percentage points to Generali's
Solvency 1 ratio, a closely-watched regulatory measure of
capital strength, the Trieste-based group said.
With the sale, Generali has raised 2.2 billion euros from
disposals, more than half its planned target. Earlier this year
Greco pledged to raise 4 billion euros from non-core asset sales
by 2015 as he pushes through a plan to shore up capital and
Generali a week ago sold its U.S. reinsurance business to
France's Scor for a total $920 million.
Europe's third-largest insurer is also seeking to dispose of
its private bank BSI, which some potential buyers think it is
worth less that its 2.3 billion Swiss franc ($2.4 billion) book
A source close to the talks told Reuters that the sale of
BSI, even if delivered below book value, is expected to add 10
percentage points to Generali's Solvency 1 ratio.
Generali has been undergoing a radical transformation since
Greco took office just under a year ago, replacing long-standing
CEO Giovanni Perissinotto.