Generali: UBS remains positive after German disposal

(CercleFinance.com) - UBS this morning confirms its buy rating advice on the share of the Italian insurer Generali, which has just announced the sale of the majority of its German "life" subsidiary, Generali Leben.


The broker maintains its 12-month target price of 17 euros.

Expected for a long time, the disposal of Generali Leben (89.9% at this stage) took place according to a value (100%) of around one billion euros. However, UBS only valued this subsidiary at between 700 million and 900 million euros, especially as its sales momentum was difficult.

In addition, Generali will receive a total of 1.9 billion euros in cash, given the credit that will also be repaid to it. The Italian group's solvency ratio will be improved by 2.6%. In short, the deal is considered positive, both from a strategic and a financial point of view.



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