Brussels-based insurer Ageas on Dec. 29 completed the sale of its stake in Italian bancassurer Cargeas Assicurazioni (CARGEAS) to BNP Paribas Cardif, for €178 million (US$213.6 million) in cash.
Ageas and BNP Paribas Cardif have operated CARGEAS as a joint venture on a roughly 50/50 basis.
In line with its strategy to focus on core businesses, Ageas announced in July 2017 that it had reached an agreement with BNP to sell its 50% + 1 share in the Italian bancassurer, which provides health, homeowner, automobile and credit insurance to individuals and businesses.
The sale of CARGEAS generates a net capital gain of €77 million ($92.4 million) for Ageas’ insurance segment in Continental Europe and an additional €10 million (US$12 million) at the group level in the general account, the company said in a statement. It noted that both the capital gain and the cash impact will be recorded in the last quarter of 2017.
The transaction is expected to have a positive impact of approximately 4 percentage points on the group’s Solvency II position, said Ageas.
Ageas operates insurance businesses in Belgium, the UK, Luxembourg, France, Italy, Portugal, Turkey, China, Malaysia, India, Thailand, Vietnam, Laos, Cambodia, Singapore and the Philippines through a combination of wholly owned subsidiaries and long-term partnerships with financial institutions and key distributors.
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