Unipol Gruppo Finanziario SpA (UNI) revised the terms of its planned merger with Fondiaria-SAI SpA (FSA), lowering the size of its holding in Italy’s second-biggest insurer after the transaction.
Unipol’s proposed terms of the merger would give it 61 percent of the new entity, compared with an April 16 request of 66.7 percent, it said in a stock-exchange statement today. The proposal must be accepted by Fondiaria, its unit Milano Assicurazioni SpA (MI), and Premafin Finanziaria SpA (PF), Fondiaria’s controlling shareholder, by June 11, it said.
Unipol agreed in January to buy new shares in Premafin as part of a plan to rescue unprofitable Fondiaria. The purchase would allow Premafin to participate in the 1.1 billion-euro ($1.4 billion) stock sale announced by Fondiaria on Jan. 30. After the capital increase, Unipol’s insurance unit, Premafin, Fondiaria and Milano Assicurazioni will merge to challenge Italy’s biggest insurer, Assicurazioni Generali SpA. (G)
Unipol, based in Bologna, forecast that the new entity will have more than 300 million euros of additional revenue and cost savings by 2015. It targets net income of 970 million euros in 2015, and a combined ratio, or claims and expenses as a percentage of premiums, of 93 percent at the end of 2015, the company said March 15.
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