Crédit Agricole strengthens in insurance in Italy

Sent 23 Dec. 2022 at 9:49Updated 23 Dec. 2022 at 10:26 a.m

Crédit Agricole strengthens again in Italy. The mutual banking giant announced on Friday morning the signing of a strategic partnership in insurance with Banco BPM, the third Italian bank. The two groups had been in exclusive negotiations since late November.

Crédit Agricole had an advantage in negotiating this partnership, which AXA had also tried to position itself for during an initial tender. Already a partner of Banco BPM in consumer credit, Green Bank bought 9.8% of its capital in April.

The memorandum of agreement signed between Crédit Agricole Assurances (CAA) and Banco BPM is planned to last twenty years and covers non-life insurance products (non-life insurance, health insurance, etc.) and creditor insurance, which will be distributed by the Italian bank. the country through its 1,500 branches with its 3.7 million customers.

The transaction also allows Crédit Agricole Assurances to buy 65% ​​of the capital of its subsidiaries Vera Assicurazioni and Banco BPM Assicurazioni from Banco BPM for 260 million euros.

The group’s second market

“These partnerships further strengthen the foundations of our investment and our long-term commitment with Banco BPM,” said Philippe Brassac, CEO of Crédit Agricole SA. “This partnership will be a major new step in our international expansion strategy,” added Philippe Dumont, CAA’s General Manager.

“The partnership with CAA will enable Banco BPM to rely on the industrial expertise of the leading European player in bancassurance,” said Giuseppe Castagna, CEO of Banco BPM, in a separate press release. The agreement is subject to necessary authority approvals.

Italy is Crédit Agricole’s second largest home market (behind France), where it has gradually strengthened through the acquisition of several regional banks. In 2021, the group thus bought Credito Valtellinese (Creval) for 855 million euros. Some say it ultimately intends to control Banco BPM.

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