Italian insurer Generali, which has been trying to sell its Swiss private bank BSI Group for more than two years, is now exploring alternatives to the sale, including an initial public offering (IPO), Reuters has reported.
Generali failed to sell the Swiss private banking unit as it had attracted bids below its estimated CHF2.3 billion (US$2.5 billion) book value.
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One of the major reason attributed to the lacklustre response from prospective buyer has been the erosion of Swiss banking secrecy and higher regulatory costs crimp margins, complicating the task of assessing the financial health and business model of a private bank.
The sale of BSI is important for Generali as the proceeds would help it shore up its capital and cut debt.
Generali and other European insurers are selling non-core assets before the planned implementation in 2016 of Solvency II regulations, which requires capital reserves to be aligned with risks to boost protection for policyholders.
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