Dutch insurer to buy Generali’s Netherlands unit

(Reuters) — Dutch insurer ASR said on Wednesday it would buy the Dutch operations of Italy’s Generali for €143 million ($171 million).

Generali Nederland generated premiums of €379 million in 2016, ASR said.

The acquisition would add €30 million to ASR’s annual profit after the deal closes in the first quarter of 2018, ASR CEO Jos Baeten said.

The deal follows Generali’s recent accords to sell its businesses in Colombia and Panama as Europe’s third-biggest insurer works to exit markets where it lacks scale with a view to raising at least €1 billion from disposals.

Generali said the sale of Generali Nederland, which contributed around €9 million to the group’s operating result in 2016, would generate a one-off net loss of €270 million.

The disposal is set to lift Generali’s Solvency II ratio - a measure of financial strength - by around 1.6%.