April 11, 2013 / 12:55 PM / 5 years ago

UPDATE 1-RGA, Scor in final race for Generali U.S. unit-sources

By Sophie Sassard and Jessica Toonkel

LONDON/NEW YORK, April 11 (Reuters) - Reinsurance Group of America and French rival Scor are competing to acquire Generali USA in a deal worth up to $1 billion, five sources with knowledge of the matter said on Thursday.

Generali has selected the two bidders among a large number for its U.S life reinsurance unit and is hoping to close a deal in May, said the sources who asked not to be named because the talks are private.

Italian financial daily Sole 24 Ore earlier reported that Scor and a U.S. player were in pole position to acquire Generali US, without naming the U.S. rival.

Generali and its financial advisers Mediobanca < and Citigroup declined to comment. Scor and RGA did not reply to requests for comment.

Munich Re, Zurich Insurance, Swiss Re, Hannover Re, RGA and several Bermuda-incorporated reinsurers such as Everest Re were also interested in buying Generali USA..

Generali’s new chief executive Mario Greco aims to raise 4 billion euros from non-core asset sales to shore up capital and restore value after long-standing CEO Giovanni Perissinotti was ousted by disappointed investors led by Mediobanca.

The insurer is hoping to secure $800m to $1bn for Generali USA and about 2 billion euros ($2.62 billion) for its private bank BSI, which it is also selling.

It has already reaped a capital gain of 143 million euros ($186.14 million) from the sale of a stake in its asset management arm Banca Generali.

The Italian insurer, along with European peers such as Aviva , is being forced to restructure to cope with low interest rates, tighter regulation and the weak economic climate.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below