Generali buys insurance asset manager Conning Holdings

Transaction brings group’s total assets under management to €775 billion

Generali buys insurance asset manager Conning Holdings

Mergers & Acquisitions

By Terry Gangcuangco

Italian giant Generali is acquiring US-headquartered insurance asset manager Conning Holdings Limited (CHL) from Taiwanese company Cathay Life.

In its announcement, Generali said: “Generali Asset Management will benefit from the addition of Conning and its affiliates’ long-standing insurance and institutional client base in the US and Asia, and will be better positioned to scale its third-party business in key markets globally by leveraging the firms’ combined investment capabilities and distribution strengths.

“The acquisition, which is fully aligned with Generali’s ‘Lifetime Partner 24: Driving Growth’ strategic plan, will reinforce Generali Asset Management’s strategy to become a leading global provider of investment solutions, creating a combined platform with US$709 billion (€650 billion) in AUM and adding high-quality, diversified capabilities in fixed income, structured and corporate credit, emerging market debt, and private real estate.”

Following the acquisition, Generali Group’s total assets under management will rise to US$845 billion (€775 billion). Meanwhile, as consideration for the contribution by Cathay Life of 100% of the shares of CHL in Generali Investments Holding S.p.A (GIH), Cathay Life is expected to own 16.75% of the share capital of GIH at closing.

Generali went on to note: “Generali and Cathay Life have established a long-term partnership, with Cathay Life entering into an asset management agreement for a minimum duration of 10 years in relation to specific insurance AUM that will continue to be managed on its behalf by the Generali Asset Management businesses including Conning and its affiliates.

“In addition, Generali and Cathay Life have also agreed to certain earn-out provisions which may become payable in cash starting from three years post-closing, conditional on the achievement of certain pre-agreed terms.”

Philippe Donnet, chief executive at Generali Group, said: “Through the acquisition of Conning and the long-term partnership with Cathay Life, we will enhance our asset management capabilities, strengthen our footprint in the key US and Asian markets, and create a platform to deliver on our broader asset management strategic ambitions in order to maximise value for all stakeholders, including Generali’s insurance business.”

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