Insurance coverage firm Ageas has reached an settlement to buy the remaining 25% stake in Belgian subsidiary AG Insurance coverage from BNP Paribas Fortis for €1.9bn ($2.3bn).
The acquisition is meant to assist Ageas’ Elevate27 technique by prioritising its growth in consolidated and cash-producing areas.
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With this transaction, Ageas will maintain all shares of AG Insurance coverage, giving it full possession.
This improvement permits Ageas to function as a completely built-in insurer in Belgium, lively in each life and non-life sectors.
The association additionally features a renewed bancassurance partnership between Ageas and BNP Paribas, confirming BNP Paribas as the primary shareholder and companion of Ageas.
Ageas CEO Hans De Cuyper mentioned: “I’m happy to announce this new vital milestone for Ageas and one other vital step in implementing our Elevate27 technique.
“Taking full possession of AG Insurance coverage allows us to additional advance our Belgian operations, constructing on the re-confirmed bancassurance partnership with our long-standing companion, BNP Paribas Fortis.”
Underneath the brand new settlement, BNP Paribas Group’s holding in Ageas is capped at just below 25%, with the choice to increase the settlement robotically after 5 years.
BNP Paribas can have the precise to appoint one member to the Board of Administrators of each Ageas and AG Insurance coverage, linked to the bancassurance partnership.
The board illustration is topic to the phrases of their ongoing cooperative agreements.
For financing, Ageas plans to make use of a mixture of sources: an fairness placement involving 18.5 million shares at €60 per share issued to BNP Paribas Cardif, together with present money, present credit score amenities and debt market choices.
BNP Paribas Cardif’s capital contribution by way of this fairness placement quantities to €1.1bn.
Upon completion, BNP Paribas Cardif’s shareholding in Ageas is anticipated to extend from 14.9% to 22.5%.
This follows Ageas’ acquisition of the Esure Group earlier this yr.
AG Insurance coverage and BNP Paribas Fortis have prolonged their bancassurance cooperation for an additional 15 years, beginning in 2027.
As well as, AG Insurance coverage and BNP Paribas Asset Administration are set to reinforce their relationship in funding administration throughout specified asset lessons, following latest modifications at AXA IM.
Completion of this transaction is topic to regulatory approval and set for the second quarter of 2026.
BNP Paribas CEO Jean-Laurent Bonnafé mentioned: “We see vital potential within the progress prospects of BNP Paribas Fortis’ bancassurance enterprise by way of the partnership with AG Insurance coverage, in addition to the deployment of our new asset administration platform’s experience created by way of the mixture of BNP Paribas AM and AXA-IM.
“We’re additionally happy to assist Ageas’ long-term improvement, below the chairmanship of Bart De Smet and the management of Hans De Cuyper.”
