BNP Paribas has announced the sale of its 25% stake in AG Insurance to Ageas, a Belgian insurance giant, for £1.9 billion ($2.2 billion). The deal grants Ageas complete control over AG Insurance, Belgium’s leading insurer. Ageas, formerly known as Fortis, has a significant history, having been bailed out by the Belgian government following the 2008 global financial crisis. As part of the bailout, Fortis sold its retail banking operations in Belgium to BNP Paribas, which became BNP Paribas Fortis.
BNP Paribas Fortis held the 25% stake in AG Insurance, which has now been acquired by Ageas. Additionally, BNP Paribas will increase its 15% stake in Ageas to 22% at a cost of £1.1 billion. According to Ageas chief executive Hans De Cuyper, taking full ownership of AG Insurance will enable the company to advance its Belgian operations, building on its partnership with BNP Paribas Fortis.
The deal also includes a long-term investment partnership between AG Insurance and BNP Paribas Asset Management. BNP Paribas chief executive Jean-Laurent Bonnafe sees significant potential in the growth prospects of BNP Paribas Fortis’ bancassurance business through the partnership with AG Insurance. The partnership will also utilize the expertise of BNP Paribas’ new asset management platform, created through the combination of BNP Paribas AM and AXA IM.
The sale is expected to close in the second quarter of next year and will result in a net capital gain after tax of £820 million for BNP Paribas. The deal is predicted to add £40 million to net profit per year. The acquisition is a strategic move for Ageas, solidifying its position in the Belgian insurance market. The partnership between AG Insurance and BNP Paribas Asset Management is expected to drive growth and expansion in the region. With this deal, BNP Paribas and Ageas reinforce their commitment to the Belgian market, paving the way for future developments in the insurance and asset management sectors.