UniCredit: purchase of CNP's 51% stake in their JV

(CercleFinance.com) - CNP Assurances announced on Wednesday that UniCredit has decided to exercise its call option on the French insurer's entire 51% stake in their Italian joint venture CNP UniCredit Vita (CUV).


CNP - which says that this option is being exercised in accordance with the terms of their shareholders' agreement - says it is proud of the progress made with Unicredit and the success of their joint venture.

The group now intends to focus on its development in Italy via its 100%-owned subsidiary CNP Vita Assicura, which carries out business equivalent to that of CUV.

This announcement comes as UniCredit unveiled on Wednesday a strategy aimed at "fully internalizing" its Italian bancassurance activities.

In addition to the CNP deal, this will involve the purchase of Allianz's 50% stake in their joint entity UniCredit Allianz Vita (UAV).

Following these operations, UniCredit will control 100% of the capital of CUV and UAV.

The Italian financial services giant justifies its decision by its desire to accelerate growth in a business that generates stable commissions and attractive profitability levels, and in which it is already one of the leading players, but also by the objective of generating synergies and strengthening its offering to customers.

Between them, the UAV and CUV joint ventures generated some 7.5 billion euros in gross written premiums last year, with cumulative technical reserves of 44.9 billion euros.

UniCredit shares rose by over 1% on Wednesday morning on the Milan Stock Exchange following these announcements.


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