Seguros Banorte Generali operates in the Life and P&C segments mainly through bancassurance, in addition to traditional channels. The disposal of the minority stake in Seguros Banorte Generali contributed EUR482m ($637m) to the total gross consideration, corresponding to an implied 18x multiple on 2012 full year earnings.

Pensiones Banorte Generali operates in the social security related Life annuities segment, with a 2012 premium income of EUR478m ($636.2m), a net result of EUR6m ($7.9m) and a shareholders’ equity of EUR69m ($91.8m). Pensiones Banorte Generali contributed EUR167m ($220.5m), corresponding to an implied 4.9x multiple on 2012 shareholders’ equity.

According to Generali, the transaction will follow the acquisition proposal made by Banorte, which held a 51% stake in the two companies and controlled the distribution.

The deal will generate a net capital gain for Generali of approximately EUR500m ($665.5m) on a consolidated basis, further strengthening the group’s liquidity and capital position with an improvement of four percentage points to its Solvency I ratio.

Through the transaction, Generali will reach more than EUR2.2bn ($2.9bn) from the disposals since August 2012, corresponding to over half of the 2015 target of EUR4bn ($5.3bn).

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Generali CEO, Mario Greco, said: "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 to manage its invested capital actively. Latin America remains a very attractive market for Generali; we therefore are interested in developing our business in the region, in particular in the Brazilian market.

"The disposal of the minority stakes we held in Mexico is attractive from a financial point of view and allow us to strengthen the group’s capital position, one of our strategic goals. Through this transaction we have already achieved more than half of our disposal plan which we remain confident of completing within the previously communicated plan period," Greco added.

The transaction is subject to approvals by the competent regulatory authorities and other customary conditions.