BNP Paribas sells AG Insurance stake to Ageas for 1.9 billion euros

[BRUSSELS] BNP Paribas has agreed to sell its 25 per cent 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 euros (S$2.87 billion) for the holding, BNP Paribas said in a statement on Monday (Dec 8).

In return, BNP Paribas is investing 1.1 billion euros in the insurer, which is expected to increase its current stake in Ageas to 22.5 per cent from 14.9 per cent.

The transaction is the latest deal for BNP Paribas under chief executive officer Jean-Laurent Bonnafe.

In 2024, he unveiled the 5.1 billion euros acquisition of AXA’s asset management unit in a bid to create one of Europe’s largest money managers, with roughly 1.5 trillion euros in assets overseen at the time.

Bonnafe said: “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.”

BNP Paribas expects the deal to result in a net capital gain after tax of 820 million euros in 2026, and lift its CET1 ratio by 5 basis points. In addition, net income will increase by 40 million euros annually, it added.

Ageas said in a separate statement that the transaction is expected to raise financial targets for Elevate27, its strategic plan for 2025 to 2027. It now anticipates shareholder remuneration of 2.2 billion euros, up from two billion euros previously. 

The insurer said that it 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 (Ageas) Group has in the debt capital market”. 

SEE ALSO

BNP Paribas completes 5.1 billion-euro acquisition of AXA Investment Managers

BNP starts buyback, boosts capital goal after share drop

Completion is anticipated for the second quarter of next year, subject to regulatory approvals. BLOOMBERG