Today Ageas announces it has reached an agreement with BNP Paribas Cardif to sell its 50% + 1 share in the share capital of Cargeas Assicurazioni (CARGEAS), its Italian Non-Life operations.
The divestment of the Italian activities, where Ageas only had a limited market share in a mature market, is in line with Ageas's strategy to concentrate its efforts on further developing businesses where it holds stronger positions or where growth prospects are better. The sale also offered an opportunity to crystallise the value that has been created in the past years.
Ageas entered the Italian Non-Life insurance market in 2009, in partnership with BNP Paribas Cardif, acquiring 50%+1 share of UBI Assicurazioni (UBIA) from UBI Banca, while establishing a long term distribution agreement with UBI Banca.
In 2014, Ageas and BNP Paribas Cardif acquired UBI Banca's remaining 50% - 1 share in the share capital of UBIA, with Ageas holding 50% + 1 share, and BNP Paribas Cardif 50% - 1 share in the new joint venture.
The transaction, which is subject to regulatory approval, is expected to close before the end of 2017. The divestment is expected to generate a capital gain of approximately EUR 75 million for Ageas.
Commenting on the transaction, Bart De Smet, CEO of Ageas, says: I would like to take this opportunity to thank the management team, staff, and our partners for their hard work and valuable contribution over the past 8 years. We believe CARGEAS will be in good hands to pursue its activities to the benefit of all its stakeholders."
Ageas is a listed international insurance Group with a heritage spanning 190 years. It offers Retail and Business customers Life and Non-Life insurance products designed to suit their specific needs, today and tomorrow. As one of Europe's larger insurance companies, Ageas concentrates its activities in Europe and Asia, which together make up the major part of the global insurance market. It operates successful 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 strong financial institutions and key distributors. Ageas ranks among the market leaders in the countries in which it operates. It represents a staff force of over 40,000 people and reported annual inflows close to EUR 32 billion in 2016 (all figures at 100%).
