Generali pulls out of race for BBVA’s bancassurance business: Report

(Reuters) — Italy’s top insurer, Assicurazioni Generali SpA, has pulled out of the race to invest in the bancassurance business of Spanish lender BBVA, daily Il Sole 24 Ore said on Tuesday.

Generali’s board decided not to go ahead with an offer after doubts emerged that the investment might not prove sufficiently profitable, the report said.

Earlier this year, sources said the Italian insurer was vying to invest in the bancassurance business of BBVA, through a joint venture agreement with a network of insurers across Spain, Mexico and Latin America.

The entire network was valued at about €1.5 billion ($1.6 billion), the sources said.

Generali and BBVA both declined to comment.

German insurer Allianz SE and U.S. rival Liberty Mutual Holding Co. Inc. were also in the race, sources added.

Presenting a new three-year plan in November last year, Generali earmarked up to €4 billion for acquisitions and growth as it looks to asset management and high-margin business in Latin America and Asia to fuel earnings.

BBVA’s insurance unit in Spain reported a 4.8% rise in profit to €311 million in 2018.