(CercleFinance.com) – Crédit Agricole announces that its subsidiary Crédit Agricole Assurances (CAA) has signed a memorandum of understanding with Banco BPM (BBPM) to be able to provide non-life insurance products and related services through the networks distribution of BBPM.
BBPM will bring its banking experience and distribution capabilities in Italy, and CAA, its expertise in non-life insurance products and services (casualty, health, …) and creditor insurance to BBPM’s clients in Italy.
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 operation would meet Crédit Agricole’s profitability criteria with an expected return on investment of more than 10% over three years and should have a very limited impact on Crédit Agricole’s CET1 ratio and on CAA’s Solvency 2 ratio.