Generali is selling its businesses in three Latin American countries as part of its plan to exit weaker markets to slash costs and boost profits.
The insurance giant has asked advisory bank Rothschild to find a new owner for its subsidiaries in Colombia, Ecuador and Panama, Reuters reported, citing sources familiar with the matter.
One of the sources told the news agency that the three businesses are being sold in separate auctions and that local industry players are expected to submit offers.
The sources further claimed that the sale process could begin after Generali completes the divestment of its Netherlands unit, the first to be offloaded in the company’s cost-cutting drive.
Generali revealed in November 2016 that it was reviewing its operations in 13-15 countries as it aimed to focus on strong and profitable markets.
The insurer said it will leave less profitable markets “in order to increase operational efficiency, improve capital allocation and mitigate risks.” The process is expected to generate at least €1 billion in savings by 2018, starting with the previous disposal of businesses in Guatemala and Lichtenstein.
In mature markets, Generali will streamline operations to reduce costs by €200 million. The company will eliminate duplicate and overlapping products, systems and processes.
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