BNP, Fortis To Purchase Majority Stake In UBI Banca’s Non-Life Unit

Fortis and BNP are entitled to pay E120 million ($177.1 million) in cash after the deal is completed

BNP Paribas of France and Fortis, a Belgium-based insurer, are likely acquire a majority stake in the non-life insurance unit of UBI Banca of Itlay – reported Reuters

Fortis and BNP Paribas Assurance would take 50% plus one share of UBI Assicurazioni, a provider of property and casualty insurance in Italy, from UBI Banca.

Reportedly, Fortis and BNP are entitled to pay E120 million ($177.1 million) in cash after the deal is completed. It could make a further payment of about E40 million depending on future business.

The source claims that the transaction will be executed by a holding company, F&B Insurance Holdings. Fortis would have a 50% plus one share stake, BNP Paribas Assurance 50% minus one share.

The purchasers stated that they would build on UBI Assicurazioni’s non-life products, which would continue to be distributed through UBI Banca. UBI stated that it saw a E45 million capital gain from the deal, quoted the news agency.