Ageas predicts €185m liquidity from French life insurance sale
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Belgian insurer Ageas has confirmed the sale of its French life insurance, savings and pension business to Carac, following exclusive talks with the Paris-based mutual insurer last month.
Ageas expected the divestment to improve the group’s solvency by 9 percentage points and increase the liquidity of the group by approximately €185m (£164m).
A spokesperson for Ageas explained the €185m is split between the sale price of €129m and a reimbursement of loans for approximately €55m.
The agreement with Carac follows a consultation Ageas had with employee representatives and the 197 employees of Ageas France will be transferred to Carac, the spokesperson told mallowstreet.
“The disposal aligns with Ageas’s strategy to streamline its European portfolio and to concentrate on its core markets in the region,” said the Belgian insurer.
Ageas’s French life and pension activities consist of Ageas France, Ageas Retraite, Ageas Patrimoine and Sicavonline.
Carac is a mutual operating in the domain of savings, protection and pension business in France.
The transaction is subject to regulatory approval and is expected to be closed during Q3 2023.
Earlier this month, Aegon UK, the UK entity of the Dutch insurance group, told mallowstreet that around 40 jobs in the UK would be at risk following its decision to offload its individual protection book to mutual insurer Royal London.
Like Ageas, Aegon said the disposal of its individual protection book supports the company’s plan to streamline the business.
Will more insurers offload some of their books to simplify their business this year?
