The top insurer in Italy is no longer competing for the bancassurance business of Spanish lender BBVA. According to reports from daily Il Sole 24 Ore and Reuters, Generali decided to pull out of the race after its board had doubts concerning the profitability of the investment. Allianz and Liberty Mutual were also competing for the BBVA business.
The news follows reports from earlier in 2019 that stated the Italian insurer was in the running to invest in the bancassurance arm of BBVA via a joint venture agreement that included a network of insurers from Spain, Mexico, and Latin America valued at around €1.5 billion, sources said.
Generali had put aside up to €4 billion for acquisitions and growth in its three-year plan, which was presented in November 2018. The insurer is keeping an eye on asset management and high-margin business in both Latin America and Asia to drive earnings, according to Reuters.
BBVA’s insurance unit in Spain revealed a 4.8% increase in profits to €311 million last year.