MILAN Italy's Unipol (UNPI.MI) and the Fondiaria-SAI FOSA.MI group have approved terms of a four-way merger that will create the country's second-largest insurer behind Generali (GASI.MI), they said on Thursday.
In a joint statement, the two groups said their boards had approved the share swap ratios of a four-way merger which also involves Premafin PRAI.MI and Milano Assicurazioni ADMI.MI, as well as a business plan for the newly created UnipolSai entity.
Under the terms of the deal, 0.050 ordinary Fondiaria shares will be offered for each Premafin share, 1.497 ordinary Fondiaria shares for each Unipol share, and 0.339 ordinary Fondiaria shares for each Milano Assicurazioni share.
UnipolSai is targeting a 2015 net profit of 815 million euros and a solvency margin of about 180 percent.
The complex deal, brokered by Mediobanca (MDBI.MI), was agreed back in January to rescue troubled insurer Fondiaria.
(Reporting By Danilo Masoni)