Italian insurance major Assicurazioni Generali has signed an agreement with Life Company Consolidation Group (LCCG) to divest its entire stake in Generali Worldwide Insurance Company and Generali Link.

Under the term of the agreement, Generali will receive about €409m in base consideration, as well as up to €10m of contingent consideration to be paid at completion of the deal, for the sale of its stakes in the two companies.

Headquartered in Guernsey, Generali Worldwide provides life-insurance-based wealth management and employee benefit solutions to multi-national organisations, expatriates and locals. It contributed nearly €35m to the group’s operating result last year.

Based in Ireland, Generali Link focuses on fund and policy administration. It offers services to Generali Worldwide as well as Generali PanEurope dac which was recently bought by LCCG and renamed Utmost PanEurope dac.

Generali Group CEO of global business lines and international Frédéric de Courtois said: “This agreement affirms our ongoing efforts to optimize the Generali’s geographical presence across the globe within this year.

“With a total value of the deals over €1.5bn, significantly above the initial target of €1bn, Generali reaffirms its ability to successfully pursue the targets of its strategic plan.”

After completion of deal, Generali Worldwide will remain active and will work as the partner of the Generali employee benefits network for its existing and future clients.

Additionally, Generali Group will retain the health portfolio of Generali Worldwide in the Caribbean, which will be run by the global health division of Generali.

Generali believes that the deal will have a positive impact on the group’s Solvency position as it will add nearly 0.9 percentage points to its regulatory Solvency II ratio.

Pending receipt of regulatory approvals, the transaction is scheduled to be completed during the first quarter of 2019.

Earlier in July, Generali signed an agreement to divest 89.9% of its German life insurance business Generali Leben to Viridium Gruppe.