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The Rise and Fall and Rise Again of Bancassurance?

What does Bank Intesa's recently aborted takeover bid for its compatriot insurer Assicurazioni Generali tell us about the future of the bancassurance model in Europe? Over the past month, various commentators have postulated a range of explanations for Intesa's interest, ranging from a desire to avoid further forced consolidation in the banking sector, through to a carefully calculated (and relatively risk free) response to the global headwinds affecting the asset management industry.

Life insurers could, at least in theory, find opportunities to diversify their longevity risk within larger financial services businesses, whilst also realising the capital efficiencies offered to them under Solvency 2 by ever wider lending-based activity.  Banks meanwhile continue you to retrench and slash their balance sheets. Might Intesa's bid represent a growing trend?...

Italian bank Intesa Sanpaolo has dropped its interest in Assicurazioni Generali, the country’s biggest insurance company. In a statement on Friday evening, Intesa said: “In the light of the analyses on the insurance group carried out on the basis of information currently available to the public, the management sees no opportunities that fulfil the criteria . . . against which it examines options for the Group’s internal and external growth on a regular basis.” Instead, it said: “Intesa Sanpaolo will improve the creation and distribution of value for its shareholders organically, while maintaining a leadership position in capital adequacy.” Intesa’s interest in Generali became public in January, and the bank had been canvassing shareholders in both groups about the deal. It had pledged to make a decision by the end of the month.

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