Generali to buy US asset manager Conning Holdings
(Reuters) — Generali agreed to buy Hartford, Connecticut-based asset manager Conning Holdings as part of a partnership with Cathay Life, a unit of Taiwan's Cathay Financial Holding, the Italian insurer said Thursday.
The deal, structured as an exchange of assets without a cash consideration, realizes Generali CEO Philippe Donnet's ambition of expanding into the asset management sector in the United States.
Under its current three-year plan, Generali had been seeking acquisition targets in insurance and asset management, earmarking up to €3 billion ($3.25 billion) for M&A transactions and citing possible deals in Europe, Asia and the U.S.
The insurer studied several potential U.S. acquisition targets in recent months before deciding to buy Conning.
Cathay Life will become a minority shareholder in Generali Investments Holding, with a stake of around 16.75%, Generali said.
Generali and Cathay Life will enter an asset management agreement for at least 10 years.
Conning, which will retain its current management team led by CEO Woody Bradford, has around $157 billion in assets under management, serving insurance and institutional clients in the U.S. and Asia.
The acquisition of Conning and its affiliates increases Generali's total assets under management to €775 billion, up from €620 billion at the end of March.
The deal is expected to close in the first half of next year, subject to customary regulatory approvals.
