Cattolica, Generali ready to invest 300 million on the increase and to become first shareholder

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The injection of resources would lead Generali to have a share of approximately 24.5% in Cattolica

by Carlo Festa

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The injection of resources would lead Generali to have a share of approximately 24.5% in Cattolica

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Generali is ready to join Cattolica Assicurazioni. According to rumors, the Lion of Trieste is ready to invest almost 300 million euros in a reserved capital increase. The injection of resources would lead Generali to have a share of approximately 24.5% in Cattolica. Currently Cattolica’s main shareholder is Warren Buffett’s Berkshire Hathaway with approximately 9 percent. For the operation to complete, however, a series of conditions have been lined up, including a profound revision of the governance that could lead to a rapid transformation into a Spa. Cattolica is currently a cooperative company.

The board of directors of Cattolica Assicurazioni, also under pressure from IVASS, has started the study of a restructuring plan which also provides for a capital increase of up to 500 million euros. The first step in this direction will be the shareholders’ meeting on Saturday 27 June, which will have to approve the delegation to the same board of directors in view of the transaction. The increase of 500 million is expected to bring the Cattolica Group’s solvency ratio to approximately 172%, above the thresholds of the risk appetite system and within the range of target values ​​expected when presenting the 2018 Business Plan- 2020.

The transformation into a spa and Generali’s entry into the capital would obviously be an epochal passage for the historic company from Verona.



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