Corporate MovesJuly 7, 2023

Conning Acquired by Italian Insurer Generali

The U.S. asset manager, which focuses on insurance, will keep CEO Woody Bradford.

Reported by Larry Light

Conning Holdings Ltd., a unit of Taiwan-based Cathay Life Insurance Co. Ltd., is being acquired by Italy’s expansion-minded insurer Assicurazioni Generali SpA, also known as the Generali Group. Cathay assumed control of Conning, an asset manager with a strong presence in insurance, in 2015.

The deal involves no upfront cash, but instead gives Cathay a 16.75% stake in Generali. Woody Bradford, Conning’s CEO and chair, will stay in those roles, and Generali indicated Conning would continue to operate autonomously.

Bradford said in a statement that the transaction creates a “highly complementary business combination that presents exceptional long-term opportunities for Conning and our affiliates.”

The addition of Conning (assets: $157 billion as of the end of March) will “enhance our asset management capabilities, strengthen our footprint in the key U.S. and Asian markets, and create a platform to deliver on our broader asset management strategic ambitions,” Generali CEO Philippe Donnet said in the statement.

Generali’s stock slipped 2.3% on the announcement of the deal Thursday, although it still is ahead 16% for the year. The insurer’s stock, typical of many financial companies nowadays, has a thrifty price/earnings ratio of just under 10.

Founded in 1912 in Hartford, Connecticut, Conning has had numerous other owners over the years, including MetLife, Swiss Reinsurance and Aquiline Capital Partners. Conning has been on an acquisition drive of its own, buying a bond insurance unit from Brookfield Investment Management in 2014 and Danish asset management firm Global Evolution in 2020.

The Conning deal will boost Generali’s assets to $845 billion. In recent years, Generali has scooped up other asset managers, notably France’s Sycomore Asset Management, and now plans to expand into the U.S. with the Conning acquisition.