Major French insurance group CNP Assurances has revealed that it will acquire the 49.9% of shares that it does not already own in French life insurer Ecureuil Vie for E1.4 billion.
CNP Assurances will acquire the remaining shares in Ecureuil from mutual bank Caisses d’Epargne to bring its previous 50.1% ownership of the business up to 100%. According to a report by AFX News, the deal is related to the merger of Caisses d’Epargne with fellow mutual Banque Populaire.
According to CNP, half of the transaction price will be financed by issuing subordinated debt and half by issuing shares. CNP said in a statement that it expects the transaction, which is subject to regulatory approvals, to have a roughly 3% accretive impact on earnings per share in 2007.
Ecureuil Vie is a life insurance company set up in 1988 by CNP Assurances and the Caisse d’Epargne Group. Its products are distributed via the Savings Banks network under a distribution agreement that was extended in June through to December 31, 2015.
Last year, Ecureuil Vie reported premium income of E9.4 billion (on a non-consolidated basis) and French GAAP technical reserves of E72.8 billion.