CNP Assurances, a personal insurer, and Marfin Popular Bank have agreed to enter into a long-term business partnership for the development of insurance and pensions sales by MPB's banking networks in Greece and Cyprus.

This insurance partnership is expected to be extended to other countries in the future, along with Marfin Popular Bank’s (MPB) international expansion in southern and eastern Europe.

Under the terms of the agreement, CNP will acquire a 50.1% shareholding in MPB’s insurance businesses led by Laiki Cyprialife, Laiki Insurance, Marfin Life, and Marfin Brokers and will assume management control of these companies. The business partners will enter into a 10-year renewable exclusive distribution agreement with an extension option in the countries where MPB develops.

As a result of this agreement, MPB will receive from CNP an up-front consideration of E145 million, plus an earn-out of about E20 million linked to business objectives. The structure of the transaction will also involve a pre-dividend of E20 million payable to MPB.

Gilles Benoist, group CEO of CNP, said: The agreement is fully aligned with our Horizon 2012 strategy which focuses external growth in three priority markets: Southern Europe, Central Europe/Eastern Europe/Mediterranean Arc and Latin America.