(Alliance News) - Assicurazioni Generali Spa and BPCE announced Tuesday that they have signed a non-binding Memorandum of Understanding to create a joint venture between Generali Investments Holding and Natixis Investment Managers.

The two companies will each hold 50 percent, with equally balanced governance and control rights.

This will create a champion with EUR1.9 trillion in assets under management, ranking ninth globally and leading Europe in revenues with EUR4.1 billion. There will be complementarity between France, Italy and the U.S., with teams of excellence and broad platform of affiliates. The JV will be the first global player by assets under management in this sector, with focus on expansion in insurance asset management for third-party clients.

The company will focus on strengthening its offering through Generali's EUR15 billion in seed and long-term capital and ability to offer innovative and diversified strategies. Focus also on synergies, growth and capital contributed by BPCE and Generali, with long-term commitments and 15-year contracts. BPCE will have preferential dividends in 2026-2027 while Generali will receive repayment of a loan related to the acquisition of MGG.

Regarding governance, Nicolas Namias of BPCE will be the chairman of the JV, Philippe Donnet of Generali will be its vice chairman. Woody Bradford will be CEO, with Philippe Setbon as deputyCEO.

As the two soceities explain, the combination aims to deliver benefits to investors, customers, and employees, with a focus on growth, innovation, and sustainability. Closing is expected by early 2026, subject to approval by the relevant authorities.

The Joint Venture would result from the contribution of assets and activities with a total value of approximately EUR9.5 billion.

Following the closing of the transaction, the impact on Groupe BPCE's CET 1 ratio would be neutral and the impact on Generali's Solvency II Ratio would be substantially neutral. GIH would be deconsolidated from Generali's accounting scope. Going forward, BPCE's and Generali's ownership interests in the joint venture would be accounted for using the equity method, which results from joint control.

Philippe Donnet, Group CEO of Assicurazioni Generali, commented, "As a leading global insurer and integrated asset manager, guided by a clear long-term vision as a life partner to our clients, Generali is committed to continuing the successful transformation and diversification of our group. The creation of a joint venture with BPCE would represent a unique opportunity to create the leading asset manager in Europe and among the top ten globally."

"A company with strong roots in Italy, France and the U.S., capable of responding to the evolving needs of clients, led by Woody Bradford, Philippe Setbon, Nicolas Namias and myself. Our home country, Italy, and all the other markets where we serve our clients, would benefit from an even stronger asset management platform with strengthened investment expertise that can bring real benefits to the economy."

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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