Kitra Advisory advises Commissioner on Eurovita bailout plan
Dettagli
Client: Alessandro Santoliquido
Date: March-September 2023
Activity: M&A Advisory
Link to the press release: Link
Description of the Deal
Kitra Advisory advised Eurovita Commissioner Alessandro Santoliquido as exclusive financial advisor on the company’s bailout plan, initiated following the financial crisis of 2022.
Company Profile
Eurovita, an Italian life insurer owned bywCinven since 2017with ~€15B in reserves and a distribution network of over 25 partner banks. In 2022 it faced a capital crisis due to rising interest rates, bond portfolio losses, and high surrenders which led to the deterioration of its capital position.
Rationale of the Deal
In January 2023, IVASS (the Italian Insurance Supervisory Authority) ordered the company to enter into extraordinary administration and suspend insurance policy surrenders, appointing a commissioner to oversee its operations and develop a recovery plan. In June 2023, an agreement was reached with five leading Italian insurers (Generali, Intesa Sanpaolo Vita, Poste Vita, UnipolSai, and Allianz), along with 25 distributing banks, to create a new special purpose vehicle responsible for acquiring approximately €10 billion in life insurance policies.
With this deal, Eurovita was able to guarantee the continuity of its customers’ contracts and preserve the stability of the Italian insurance system, thanks to a coordinated solution between institutions, insurers, and bank distributors.
