Bpm bank he signed with Crédit Agricole a partnerships in the bancassurance of the non-life and protection sector valued (at 100%) for a total of 400 million. Consequently, for the sale of 65% of the CAA Insurance Companies will pay the group led by Giuseppe Castagna a total of euro 260 million. As usual for this type of transaction, "the sale price is subject to adjustment following the due diligence and will be paid in cash on the closing date", explains the banking group in a note, adding that "earn- out and claw-back depending on the achievement of the objectives set by the parties and put and call options for CAA and Banco Bpm respectively on the equity investments that will be sold”.
“The operation will have a positive impact on CET1 ratio fully loaded adjusted of Banco Bom estimated at 13 basis points”, continues the note. At the same time, the banking group will maintain a "significant pro-rata contribution from the expected profits of the Insurance Companies, as well as benefiting from the commission flow deriving from the commercial agreement".
The term-sheet (preparatory agreement) provides for the subsequent signing of the definitive agreements relating to the sale of the equity investments in the Insurance Companies and of the commercial agreements with the aim of reaching the closing of the transaction approximately by the end of 2023. The closing is subject, as mentioned before, at a stage of due diligence, to the approval of the competent Supervisory Authorities and to the repurchase of the stake in True Insurance as a result of the exercise of the purchase option by Banco Bpm against Cattolica Insurance.
“We are extremely satisfied with the agreement reached with Crédit Agricole – declared Castagna -. The partnership with CAA will allow Banco Bpm to leverage the industrial expertise of the major European player in the bancassurance field. Thanks to this agreement, we have been able to fully exploit the potential of our Non-Life/Protection sector, building on the positive experiences gained in a success story like that of Agos".
The term-sheet provides in detail:
- The acquisition by CAA of the 65% stake in Banco Bpm Assicurazioni and, subject to the repurchase by the Bank of the stake currently held by Cattolica Assicurazioni, of the 65% stake in Vera Assicurazioni which, in turn, holds 100% of True Protection.
- The start of a commercial partnership of duration of 20 years in the property and casualty sector.
