By Cristina Roca

 

Assicurazioni Generali SpA is in exclusive talks to buy Credit Agricole SA's La Medicale business, the two companies said late Wednesday.

La Medicale is Credit Agricole Assurances' insurance subsidiary for healthcare professionals.

Generali would also buy the death-coverage portfolio of Predica, a life insurer fully owned by Credit Agricole's insurance business.

La Medicale's annual premiums stood at 552 million euros ($618.3 million) at the end of last year, including EUR80 million in premiums related to Predica's death coverage portfolio.

The deal could value the assets at around EUR400 million, a person close to the negotiations told The Wall Street Journal.

For the Italian insurer, the acquisition would strengthen its position in the French market. For Credit Agricole Assurances, the French bank's insurance unit, the deal would reflect its decision to focus on its bancassurance model of offering insurance through the group's banks, which offers important synergies.

The deal is expected to close mid-2022, the companies said. Any agreement remains subject to consultation with the workers' council and antitrust clearance.

 

Write to Cristina Roca at cristina.roca@wsj.com

 

(END) Dow Jones Newswires

November 25, 2021 02:19 ET (07:19 GMT)

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