Eurovita

Activity
Life insurance products
Acquired
June 2016
Sector
Financial Services
Eurovita

Related links

Business
Eurovita is a Milan-based provider of life insurance products.

The combined group was renamed Eurovita on 31 December 2017, following the merger between ERGO Previdenza, Old Mutual Wealth Italy and Eurovita Assicurazioni.

Eurovita offers saving, protection and investment tailor-made solutions with a proposition strategy differentiated per distribution segment.

The Company’s life business, rank among the top life insurers in Italy, with €17 billion gross reserves, through a network of 11.000 financials advisors, 2.500 bank branches and 150 agencies across Italy.

Cinven's goal is for Eurovita to lead the Italian insurance market's consolidation and to become a market leader in Italy by acquiring scale, products and access to customers.

Strategy
Cinven's strategy is to rapidly increase the size of Eurovita's insurance business through a consolidation of the market, which is dominated by small and medium sized players that do not benefit from the sector's inherent economies of scale, as well as international players that are seeking to scale back their Italian operations. In addition, there is an opportunity to invest in process efficiencies, improvements in customer service and expansion of the Eurovita's distribution channels.

The Italian life insurance market is the fourth largest in Europe, with approximately €530 billion of gross reserves. In addition, it has among the fastest growth rates in Europe, at around 28% per annum over the past two years, driven by the Bancassurance distribution channel.

The investment builds on Cinven's outstanding track record of investing in, growing and consolidating life insurance companies in Europe - including Partnership Assurance and Guardian Financial Services in the UK, and Heidelberger Leben Group in Germany. Eurovita represents Cinven's ninth transaction in the European life insurance sector, including primary investments and bolt-on acquisitions.

In addition, Cinven has a successful track record of investing in the Italian market, through its investment in Avio, a leading aerospace business, which has experienced strong organic growth during Cinven's period of ownership.