Potential resale of Liberty Insurance's Irish subsidiary business reportedly planned
In the dynamic world of insurance, change is a constant. This is particularly true in the Irish market, where companies are continually repositioning themselves to adapt to the ever-evolving landscape. One such company is Generali, the Italian insurance giant, which has recently entered the Irish market following a series of reforms aimed at reducing volatility and coverage costs.
Generali made headlines earlier this year when it acquired RedClick, its Irish unit, from US peer Liberty Mutual in a €2.3 billion deal. The acquisition marked Generali's return to the Irish market after a 23-year absence, during which it had closed its Dublin office.
Now, Generali is seeking to improve its profitability by focusing on more lucrative assets, expanding in the casualty and property business, and increasing its presence in the asset management sector. As part of this strategy, Generali has hired Bank of America to review options for RedClick, its Irish unit.
One of the options under review is a disposal of RedClick. If a sale were to occur, it would mark a second change of ownership within 15 years for RedClick. This potential move comes after the rebrand of RedClick, which occurred less than a year ago, with Lorenzo Ioan appointed as general manager.
RedClick, now under Generali's umbrella, had 250,000 customers and over 400 employees as of late last year. The company has been a significant player in the Irish market, but the strategic review could signal a new direction for the insurer.
The news of the strategic review was reported by Bloomberg on Thursday. However, representatives for Generali and Bank of America declined to comment on the potential sale of RedClick.
Meanwhile, the Irish market is witnessing a flurry of activity. In 2023, Revolut entered the Irish motor insurance market, with policies underwritten by AIG. South African insurance group Outsurance also launched an Irish motor and home coverage offering in May last year.
This growth in the Irish market is not surprising, given its strategic location and the growing demand for insurance services. As companies continue to navigate this dynamic landscape, we can expect to see more changes and developments in the coming months.
