Generali Enters Talks to Buy Credit Agricole Unit

Assicurazioni Generali has entered into exclusive talks with Credit Agricole to buy the French bank’s subsidiary La Medicale, as part of plans to expand its European non-life and health insurance businesses. According to a statement by the Italian insurer, the talks include the sale of Predica’s death coverage portfolio, which La Medicale manages, to Generali. Predica is a life insurance company, fully owned by Crédit Agricole Assurances. Insiders have indicated that the deal may be valued at about €400mn ($450mn). Founded in 1948, La Medicale had €552mn ($619mn) of annual premiums at the end of last year and a portfolio with more than 600,000 policies.

Generali’s GBP bonds were stable, with its 6.416% Perp down 0.03 to 100.975. Credit Agricole Assurance SA’s EUR bonds were also trading stable, with its 4.5% Perp down 0.11 to 112.

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