11 July 2023

Generali acquires controlling stake in Conning

The acquisition will make Generali one of the largest asset managers in Europe and significantly increase its total assets under management (AUM) to USD 845 billion. The transaction is currently going through the standard regulatory review process and is expected to be completed in the first half of 2024.

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Founded 110 years ago in Connecticut, Conning has seen remarkable growth in assets under management (AUM), increasing from $85 billion to $157 billion in less than a decade. Most of the approximately 500 employees are expected to remain unaffected by the transition to Generali. Conning has been operating under Cathay Financial Holding, a financial holding company in Taiwan, since 2015. The latter boasted impressive assets totalling US$392.8 billion at the end of 2022. In 2015, it made a strategic investment of US$240 million in Conning.

Generali will not be obliged to make any initial cash payment. Instead, Cathay Life will acquire a 16.75% stake in Generali Investments Holding, which comprises the majority of Generali's asset management activities. In addition, as part of the agreement, Generali and Cathay Life have agreed to form a long-term partnership lasting at least 10 years.

Generali aims to increase its profitability by prioritising more lucrative assets and expanding its presence in asset management, casualty and property insurance. In line with this strategy, the company recently reached an agreement to acquire a set of European businesses from US insurer Liberty Mutual Holding for a total amount of €2.3 billion.