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Compre Set To Complete Generali Legacy Transaction

Handshake Merger-SF
January 02, 2019

Independent re/insurance legacy specialist Compre is approved to acquire two portfolios from Assicurazioni Generali S.p.A. (Generali) in an undertaking intended to provide legal finality for the legacy liabilities held by Generali's UK branch. The effort is meant to optimize capital allocation and increase operational efficiency for Generali. Further details of the transaction were not disclosed.

Under Compre's claims migration process, operational and claims responsibility for the acquired business was previously transferred in April 2018. The legal transfer represents the final process in delivering full economic, legal, and operational finality, according to Compre.

According to Steve McElhiney, president and CEO of EWI Reinsurance, runoff and related transactions present an enormous opportunity in the property and casualty industry. The common tools used for runoff transactions include commutations, loss portfolio transfers, and assumption agreement (novation), which can be employed to release and redeploy risk-bearing capital in support of new business strategies while freeing up organizational resources in return for an agreed-upon premium.

Historically, these runoff tools have been used in North America, London, and Europe. More recently, acquisitive Asian companies are taking on some excellent liabilities but may want to discharge some of them. There are also many captive insurance companies around the world that are subject to using runoff solutions, and many great opportunities for growth in runoff transactions exist.

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