Accelerates the Banco Bpm in insurance field, plays in advance and lays the foundations for creating a precise perimeter around the entire sector to be ready for the next moves, Axa is also watching with interest.
Il Cda of the institute chaired by Giuseppe Castagna which met today and decided to exercise the option for purchase -since partner Covéa Cooperation SA of 81%- of the share capital of Bipiemme Life SpA, the insurance company operating in the life branch, of which Banco BPM already owns a 19% stake, thus reaching total control. Bipiemme Vita in turn holds 100% of the share capital of Bipiemme Insurance SpA, operating in damage branch.
Exercise price of the call estimated at 310 million
The exercise price of the call (based on the corresponding level of the Unrestricted Tier1 as of 30 June 2021) is estimated at around 310 million, says a note from the institute, specifying that the completion of the transaction will take place in July, and that an estimated contribution to net profit of the bank of 29 million for the 2023.
Game ahead of the 2021-2024 Strategic Plan
The operation represents an acceleration of the company's strategy 2021-2024 Strategic Plan of the Banco BPM Group announced to the market on 5 November last, which envisaged the internalisation of the insurance business by the end of 2023.
Moreover, the agreements with the Covea group, updated to last June, provided for the right of Banco BPM to acquire, by exercising the call option, 100% of the capital of Bipiemme Vita in the period between 8 September 2021 and December 31, 2023.
THEcurrent operating structure and organizational structure of Bipiemme Vita and Bipiemme Assicurazioni - which operates independently of the current parent company - will enable the Banco BPM Group to develop the insurance business “in-house”.says the note.
In sight integration of Vera Vita and Vera Assicurazioni
Also such trim it will also allow for scalability of the platform and, in perspective, the next one integration of Vera Vita and Vera Assicurazioni, currently 35% owned by Banco BPM, in implementation of the agreements with Cattolica Assicurazioni – now part of the Generali Group –
which provide for a call option in favor of Banco BPM for the purchase of the remaining 65% of both companies, exercisable starting from 1 January 2023.
According to some market rumors, this maneuver is preparatory to the sale of the entire insurance business of Banco Bpm to Axa group, for a value indicated by some to be around 1,5 billion.
Extraordinary dividend of 120 million for the benefit of Banco Bpm
A valley of the closing, as part of the operations to optimize the company's assets, the disbursement of a extraordinary dividend of Euro 120 million, made up of retained earnings reserves, for the benefit of Banco BPM as sole shareholder.
Last week Credit Agricole announced its entry into the field of Italian banking risk by acquiring the majority stake, 9,81%, of Banco Bpm.
