(Dec 8): BNP Paribas SA agreed to sell its 25% stake in AG Insurance to Ageas, giving the Belgian firm full control over its home market’s leading insurer.
Ageas will pay €1.9 billion for the holding, according to a statement on Monday. In return, BNP Paribas is investing €1.1 billion in the insurer, which is expected to increase its current stake in Ageas to 22.5% from 14.9%.
The transaction is the latest deal for BNP Paribas under chief executive officer Jean-Laurent Bonnafe. Last year, he unveiled the €5.1 billion acquisition of Axa SA’s asset management unit in a bid to create one of Europe’s largest money managers, with roughly €1.5 trillion in assets overseen at the time.
“We see significant potential in the growth prospects of BNP Paribas Fortis’ bancassurance business through the partnership with AG Insurance, as well as the deployment of our new asset management platform’s expertise created through the combination of BNP Paribas AM and AXA IM,” Bonnafe said in the statement.
BNP Paribas expects the deal to result in a net capital gain after tax of €820 million in 2026 and lift its CET1 ratio by ive basis points. In addition, net income would increase by €40 million annually, it said.
Ageas said in a separate statement that the transaction is expected to raise its “Elevate27” financial targets. It now anticipates shareholder renumeration of €2.2 billion, compared with €2 billion previously.
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Ageas aims to fund the transaction through the equity placement to BNP Paribas along with a “mix of cash reserves, existing financing facilities and the flexibility the group has in the debt capital market,” it said.
Completion is anticipated for the second quarter of next year, subject to regulatory approvals.
Ageas shares were up 0.9% at 9.05am in Brussels. BNP Paribas shares gained 0.5%.
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