MILAN (Reuters) - Generali (MI:GASI) said on Tuesday it has agreed to buy Credit Agricole (PA:CAGR)'s health insurance business La Medicale for 435 million euros ($489 million).
The Italian insurer said it expected a negative impact from the deal on its solvency ratio, which measures the financial strength of insurers, of around 4.3 percentage points. "La Medicale's complementary skills and expertise will offer Generali France the opportunity to establish a strong relationship with healthcare professionals, an important customer segment, whilst being able to leverage a market-leading brand," Generali, Italy's biggest insurer said.
As part of the transaction, which is expected to be completed this year, Credit Agricole's Predica business will sell Generali a portfolio of policies that pay out on the death of the policyholder, which are sold by La Medicale, Generali said in a statement.
($1 = 0.8894 euros)