CNP Assurances, a France-based provider of personal insurance, has said that it will acquire 65% interest in MFPrevoyance, an MFP Services subsidiary, for a total consideration of EUR86.5m.

Since the reform of France’s Mutual Insurance Code in 2002, a growing number of mutual insurers have teamed up to create new groups that are better equipped to meet the challenges of tighter regulation and increased competition. This movement has been observed not only among civil service mutual insurers but also among companies serving the private sector.

In this environment, MFP Services and CNP Assurances agreed to deepen their ties through a new partnership structure.

According to CNP Assurances, MFPrevoyance will now act as a vehicle to: strengthen the partners’ positioning in the civil service mutual insurance market; accelerate their expansion in the overall group employee personal risk insurance market; help develop coverage for emerging risks such as long-term illnesses; and support the civil service mutual insurers’ corporate service offerings.