By Adria Calatayud

Assicurazioni Generali said Thursday that it has agreed to buy Liberty Seguros from Liberty Mutual Group in a 2.3 billion-euro ($2.49 billion) deal that expands its European footprint.

The Italian insurer said the deal will strengthen its position in the property-and-casualty segment in Spain and Portugal and allow it to enter that market in Ireland and Northern Ireland. Liberty Seguros is profitable and will contribute more than EUR1.2 billion in premiums, predominantly in the property-and-casualty segment, Generali said.

The price of the deal includes all excess capital of Liberty Seguros and is subject to customary closing adjustments, Generali said.

The acquisition, which is subject to regulatory approvals, is expected to generate additional economies of scale throughout the group driven by cost reductions, information-technology optimization and cross-selling of Generali products, the insurer said. Generali said the deal is aligned with its strategy.

The insurer said the estimated impact of the acquisition on its regulatory solvency ratio--a measure of capital strength--is expected to be around minus 9.7 percentage points. Generali said its solvency ratio was above 330% at the end of last year.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

June 15, 2023 10:50 ET (14:50 GMT)

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