Netherlands-headquartered ABN AMRO said on 17 May that its French private bank branch Neuflize OBC had entered into exclusive negotiations with BNP Paribas Cardif to sell the unit to form a new strategic partnership in life insurance in France.
This partnership will lead to a distribution agreement and the sale of Neuflize Vie to BNP Paribas Cardif, the insurance subsidiary of the BNP Paribas Group.
Neuflize Vie is the French insurance joint venture owned by ABN AMRO (60%) and AXA (40%). BNP Paribas Cardif intends to acquire all shares in Neuflize Vie for an undisclosed amount.
The combination of BNP Paribas Cardif and Neuflize Vie will "constitute an undisputed leader in high-end life insurance" in France, the statement said.
In addition, BNP Paribas Cardif and Neuflize OBC intend to enter into a strategic partnership to ensure that Neuflize OBC's clients continue to have access to high-end insurance products.
The transaction will marginally affect ABN AMRO’s profitability and RWAs, resulting in a minor positive impact on ABN AMRO’s CET capital ratio.
To date, this transaction remains subject to the approval of the competent regulatory and competition authorities as well as to applicable procedures concerning the employees involved.
