Allianz acquires Italy’s Tua from Generali to cement market position

Germany’s Allianz has further strengthened its presence in Italy by agreeing to acquire P&C carrier Tua Assicurazioni, formerly part of Cattolica Assicurazioni, from Generali for €280m. This follows the acquisition of Aviva’s Italian business, rebranded Allianz Viva, in 2021 for €330m. Allianz said that Tua Assicurazioni has a profitable P&C insurance portfolio with overall gross written premiums of about €280m in 2022, mainly managed via a distribution network of almost 500 agents. About 60% of the insurer’s business is in the motor segment. The transaction is subject to regulatory approvals, expected at the beginning of 2024. Upon completion, Allianz’s S.p.A’s P&C market share in Italy is expected to increase by approximately one percentage point, consolidating its position as the number three player in the market, the group said. “Thanks to its strong focus on customer centrality and distribution excellence, Allianz will ensure a smooth transition for clients, employees and agents while realising benefits of scale,” said Allianz. Giacomo Campora, CEO of Allianz S.p.A., commented: “The acquisition of Tua Assicurazioni perfectly fits within our strategy, growing our footprint in P&C with a focus on retail and SMEs. Since 2014, we have been successfully integrating three large groups of professional agents (Milano, SASA and recently Aviva), thanks to the depth and breadth of our products and the modern and efficient technical platform. We are confident that the new agents and their clients will benefit from joining Allianz.” The Milano Assicurazioni deal was completed in June 2014. Allianz acquired the insurer from UnipolSai Assicurazioni for €200m and through that acquired a network of 725 agencies and 470 employees. At roughly the same time, UnipolSai also sold the Sasa business unit for about €440m. Generali for its part said that the latest transaction is aligned with the implementation of the group’s ‘Lifetime Partner 24: Driving Growth’ strategy in Italy, which is designed to pursue profitable growth and reduce complexity to make its “operating machine” more efficient and increase P&C diversification. This plan, adopted in 2021 during the Covid-19 pandemic, includes investments in digital technology totalling €1.1bn during the plan horizon, a 60% increase on the last strategic cycle. The group said the transaction will add approximately one percentage point to the group’s Solvency II position and will have negligible impact on the EPS. Allianz clearly has a long-term strategy to build its position in the Italian insurance market, but the outlook is not that bright according to analysts. DBRS Morningstar said earlier this year that the outlook for non-life insurance companies in Italy is “challenged”, mainly by concerns related to inflationary pressure on the cost of claims. The European Insurance and Occupational Pensions Authority (Eiopa) reported that the combined ratio in the Italian non-life segment increased on average by three percentage points year on year in the first half of 2022. The motor insurance market is suffering most. “It remains unclear how non-life insurance companies will be able to translate the effect of higher costs related to inflation into their pricing,” said DBRS Morningstar. At the end of May, AM Best maintained its negative outlook on the Italian non-life insurance market because of an expected slowdown in growth driven by lower demand in a challenging economic environment, declining underwriting profitability caused by inflation and the competitive motor market, and an elevated risk profile stemming from a “concentrated investment portfolio”.

Allianz acquires Italy’s Tua from Generali to cement market position

German insurer continues Italian P&C growth despite challenging conditions

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