Generali buys U.S. asset manager Conning under deal with Cathay Life (updated)

Cathay Financial Holding

06/07/2023 16:25

(Adds quotes from Generali exec, details)
       MILAN, July 6 (Reuters) - Generali  GASI.MI  has agreed
to buy Connecticut-based asset manager Conning Holdings as part
of a partnership with Cathay Life, a unit of Taiwan's Cathay
Financial Holding  2882.TW , the Italian insurer said on
Thursday.
        The deal, structured as an exchange of assets without a
cash consideration, realises Generali CEO Philippe Donnet's
ambition of expanding into the asset management sector in the
United States.
  
        Under its current three-year plan, Generali had been
seeking acquisition targets in insurance and asset management,
earmarking up to 3 billion euros ($3.25 billion) for M&A
transactions and citing possible deals in Europe, Asia and the
United States. 
    The insurer studied several potential U.S. acquisition
targets in recent months before deciding to buy Conning. 
        Cathay Life will become a minority shareholder in
Generali Investments Holding, which comprises the majority of
the group's asset management activities, with a stake of around
16.75%, Generali said.
  
        The deal takes Generali into two strategic areas -- the
United States where it was not active in the industry, as well
as expanding in Asia through the partnership with the seller,
said Carlo Trabattoni, the head of Asset & Wealth Management for
Generali.
  
        Furthermore Generali will become one of the top 10
players in asset management in Europe, he added. 
  
    Generali and Cathay Life will enter an asset management
agreement for at least 10 years.    
    Conning, which will retain its current management team led
by CEO Woody Bradford, has around $157 billion in assets under
management, serving insurance and institutional clients in the
United States and Asia.
        The acquisition of Conning and its affiliates increases
Generali's total Assets Under Management (AUM) to $845 billion
(775 billion euros), up from 620 billion euros at the end of
March.
  
        The deal, whose closing is expected in the first half of
next year, is subject to customary regulatory approvals. 
  
     ($1 = 0.9221 euros)



 (Reporting by Gianluca Semeraro; writing by Valentina Za
Editing by Keith Weir)
 ((valentina.za@thomsonreuters.com; +39 02 6612 9526;))