Eurovita Holding S.p.A. (“Eurovita”), the independent Italian life insurer, today announces the signing of an agreement with the financial services leader Prudential Financial, Inc. (“PFI”), to acquire Pramerica Life S.p.A. (“Pramerica”), an Italian insurer specialised in life insurance.
Cinven, the international private equity firm, formed the Eurovita group in 2017 through the merger of ERGO Previdenza, Old Mutual Wealth Italy and Eurovita Assicurazioni as part of its strategy to create a market leading insurance consolidation platform in Italy. The acquisition of Pramerica Life will allow Eurovita to further strengthen its distribution network and will bring valuable new capabilities, especially in the life protection segment, enhancing the ability of the Group to design and implement tailor made solutions for the benefit of its customers.
This acquisition marks a new milestone in the growth strategy of Eurovita and confirms its position as a leading market consolidator in the Italian life insurance industry. After the acquisition of Pramerica, Eurovita will become a group with around €2.0 billion GWP (gross written premiums) and €17.5 billion gross reserves. The combined Group has a distribution network of more than 11,000 financial advisers, over 2,500 bank branches, and over 100 agents and brokers.
Pramerica made its debut in Italy in 1990 and has been operating in the life insurance sector for over 25 years, offering savings, investment and insurance solutions for families and businesses. In 2015, it extended its offering to include risks arising from accidents and sickness.
Erik Stattin, Group CEO of Eurovita, commented: “Pramerica is a highly regarded niche-player in the Italian insurance sector with very specific and interesting capabilities and a product range that will contribute to further accelerate the growth strategy of Eurovita”.
Eugenio Preve, Senior Principal of Cinven, said: “The acquisition of Pramerica by Eurovita is a clear example of the market consolidation strategy that Cinven pursues in order to create value through its portfolio companies. It also enhances Eurovita’s capabilities in providing customers and distributors with attractive products. Thanks to its organic growth and its acquisitions, Eurovita has now made a new step to consolidate its leadership in the Italian life insurance industry.”
The value of this transaction was not disclosed.
The completion of the transaction is subject to the customary authorisation by the Italian insurance supervisor, IVASS (Istituto per la Vigilanza sulle Assicurazioni) and the Italian Antitrust Authority.