The move confirmed Genarali’s intentions to get the fresh capital it needs by divesting itself of the Lugano-based private bank, as PBI revealed last month.
BSI rumored sale price of around $2bn is attracting the interest of several banks.
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Bank Julius Baer and rival Raiffeisen Group, owner of a chunk of Bank Vontobel, are seen as the most likely bidders for BSI.
PBI reported that the Italian insurance giant was in need of an estimated 5bn ($6.4), as its capital was depleted by exposure to Italy’s sovereign debt.
Genarali’s CEO Giovanni Perissinotto was ousted by investors in June in a vote of no confidence led by investment bank Mediobanca, after earning fell 50% and the stock price almost dropped to its lowest level in the last 20 years.
Replacing CEO Mario Greco, who is to take up his post the first of August, will work to cut costs creating synergies at group level and to review Generali’s permanence in non core markets such as private banking, Milan analysts said.
BSI reported an upbeat performance for 2011, with net new money inflow 8.8% higher at CHF6.7bn ($6.86bn).
That brought total assets under management (AuM) to CHF77.7bn, up from CHF76.2bn in 2010.
Source: Private Banker International
