Acquisition of 24% of group to dilute previous top shareholder Berkshire Hathaway
The equity stake Generali has taken comes alongside a co-operation agreement between the two companies, which will work together in areas including asset management, reinsurance and technology such as telematics in cars.
Italy is the most mature market in Europe when it comes to leveraging telematics including not just monitoring driver behaviour and helping price risk but also in claims management.
The increased interest in usage-based pricing and flexible motor insurance products makes this one focus for better customer retention, satisfaction and service together with operational efficiencies
Italian insurer Generali has come to the rescue of Cattolica Assicurazioni, a troubled local rival part-owned by Berkshire Hathaway. Regulators last month ordered Cattolica to raise €500m of capital after coronavirus-related market volatility hit the financial position of its life insurance businesses. Insurers around the world have been hit hard by the crisis, which has reduced the value of their assets and increased their liabilities. In March Eiopa, the EU’s insurance regulator, urged insurers to protect their balance sheets by cancelling their dividends.
https://www.ft.com/content/63e394cd-7641-4a0e-b167-1682183da788
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