Italian insurance giant Generali has unveiled plans to overhaul its German business by integrating 10 of its product groups into one and by placing its life business Generali Leben into run-off.
Under the restructuring programme, Generali Deutschland will bring all of its product factories under one platform by combining all technical and product capabilities of P&C, Health and Life insurance businesses.
The restructuring is part of the insurer’s strategy to reorganise its operating performance and create long-term value.
Generali noted that the integration across various platforms will provide a simpler and innovative product offering that can be customised as per the demands of the diverse distribution channel and brands.
Generali Group CEO Philippe Donnet said: “Today’s announcement is in line with Generali Group’s key strategic objectives: to improve operating performance and to create long-term value.
“It accelerates Generali’s transformation in Germany, one of the Group’s core markets. These actions will simplify processes, consolidate our distribution network, increase our product range and strengthen the Generali brand.
“Further, the run-off of Generali Leben will free up resources that will allow us to capture new growth opportunities in the German market.”
Additionally, Generali will place Generali Leben into run-off, which the Italian insurer believe will provide improved security for all existing life contracts while substantially mitigating the group’s exposure to interest rate risk.
Generali Deutschland has planned to start the run-off during the first quarter of 2018.
Separately, the Italian insurance carrier has signed an exclusive distribution agreement with financial adviser network DVAG to distribute its products exclusively. Generali owns 40% percent of DVAG.