(Boursier.com) — Agricultural credit SA announces that Banco BPM (BBPM) and Crédit Agricole Assurances (CAA), a subsidiary of Crédit Agricole SA, have signed a memorandum of understanding for the establishment of a long-term bancassurance partnership. The latter aims to provide non-life insurance products and related services through BBPM’s distribution networks.
As part of this partnership, BBPM will bring its banking experience and distribution capabilities in Italy. CAA will bring its expertise in innovative insurance products and services, offering personalized non-life insurance solutions (casualty, health,…) and creditor insurance to BBPM’s clients in Italy, as well as the efficiency of the European leader in bancassurance.
Beyond the 20-year distribution agreement, the structure of the contemplated transaction provides that CAA will buy 65% of the capital of Vera Assicurazioni and Banco BPM Assicurazioni from BBPM.
This transaction would meet Crédit Agricole SA’s profitability criteria with an expected return on investment of more than 10% over 3 years and should have a very limited impact on Crédit Agricole SA’s CET1 ratio and on CAA’s Solvency 2 ratio.
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