Milano, 24 June 2003

Banca Primavera’s PFS operations transferred to Banca Generali

It will be the sector’s third largest operator with 5,000 financial advisors

 

Generali Group and Intesa Group, in the framework of a long-standing co-operation, have launched an important strategic partnership in the Personal Financial Services, establishing an entity that will be the third largest in the sector.

 

The Boards of Directors of Banca Intesa, of Intesa e.Lab (Intesa Group), of Banca Primavera (Intesa Group) and Banca Generali (Generali Group), meeting today, have decided on the transfer to Banca Generali of Banca Primavera’s PFS operations, made up of  about 1,600 Banca Primavera financial advisers, who manage approximately € 5.4 billion, and of 17 currently operative bank branches.

 

The strategic aim of this operation lies in the intention of creating a large and highly efficient multichannel bank that would emerge as one of the main players in the Italian PFS market. In terms of assets managed for clients, the new entity will be the country’s third largest operator with over € 13 billion in total assets, some 5,000 financial advisers (approximately 1,600 from Banca Primavera, 1,200 from Banca Generali - including the Private Banking business unit – and 2,200 Simgenia financial advisers operating in the insurance networks of Generali Group), 400,000 clients and 21 not-heavily-staffed bank branches located in the principal Italian cities.

 

The increase in net equity at Banca Generali, following the transfer, will amount to approximately € 32 million, in consequence of which Banca Primavera will hold a stake in Banca Generali’s capital. It is expected that, also following other future purchase and sale operations carried out by the parties in cash, at the conclusion of the operations, Generali Group and Banca Intesa (through Banca Primavera) will respectively hold 75% and 25% in Banca Generali.

 

This operation, which is part of the development set out in the Generali Group’s 2003-2005 Strategic Plan, will allow Generali to significantly strengthen a distribution channel having a strong potential in terms of counselling – a channel that is complementary to the insurance agency network, which continues to be central in the Group’s distribution strategy – and consequently to boost its activities in life insurance and, in particular, in the supplementary pension sector.

 

With this strategic partnership, Intesa Group achieves the double objective of optimising its investments in the PFS sector and of making use of a distribution channel characterised by high critical mass and  significant economies of scale.

 

In view of the characteristics of the distribution networks involved in the operation, the new entity will focus mainly on the middle-high client target, which requires, especially in the current financial market scenario, a highly qualified and personalised advice for the global management of its investment portfolio (savings, life policies, stocks and cash).

 

Banca Generali, managed by CEO Giorgio Girelli, will offer a new range of products including, in particular, the products that are currently distributed by Banca Primavera in the asset management sector (mainly Nextra S.g.r.’s investment funds and open-end investment funds - Sicav) that will be integrated with the products distributed by Banca Generali itself. Alongside with Generali Group financial products, Banca Generali offers approximately 400 investment funds and open-end investment funds of 12 among the most important investment companies in Italy and abroad. In the life/pension sector, both networks already distribute the life policies of La Venezia Assicurazioni, a Generali Group insurance company. In addition other Intesa Group and Banca Generali products will also be distributed, namely mortgages, revolving cards and leasing.

 

This operation is expected to be finalised by next October and is subject to the required authorisations by the supervisory authorities.