Ageas sells Italian non-life shares for €75m gain

Insurance group Ageas has reached an agreement with BNP Paribas Cardif to sell its 50 percent +1 share in the share capital of its Italian non-life operations Cargeas Assicurazioni (CARGEAS).

The divestment of the Italian activities, where Ageas only had a limited market share in a mature market, is expected to generate a capital gain of approximately €75 million for Ageas.

The transaction 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 company said that 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 percent +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 percent -1 share in the share capital of UBIA, with Ageas holding 50 percent +1 share, and BNP Paribas Cardif 50 percent -1 share in the new joint venture.

Bart De Smet, CEO of Ageas, said: "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."

The transaction, which is subject to regulatory approval, is expected to close before the end of 2017.

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