Ageas will take full ownership of the Portuguese Non-Life activities of its joint venture with MBCP by acquiring MBCP's 49% stake. This transaction aligns with Ageas's Vision 2015 target to develop its Non-life activities.

Transaction details

Ageas will pay MBCP EUR 122.5 million to acquire the remaining 49% in Médis and Ocidental Seguros (1).  The transaction includes a one-off price adjustment after 4 years to reflect actual versus projected commercial performance through the MBCP network. The transaction is subject to regulatory approval.

Both parties agreed to upstream EUR 290 million in the form of dividends and capital reduction while maintaining the solvency levels of Millenniumbcp Ageas above 200%.  The total operation is expected to be cash accretive for Ageas.

MBCP reconfirms its full commitment to the ongoing distribution of Life and Non-Life products from the companies that today form Millenniumbcp Ageas (Ocidental Vida, Pensõesgere, Ocidental Seguros and Médis) (2)  on an exclusive basis. The distribution agreements for both Life and Non-Life remain in place until the end of 2029.

In 2013, the Non-Life activity posted gross inflows of EUR 251 million, with the private Health insurance provider Médis representing the largest activity. The Non-Life activities reported a profit of EUR 12 million on a 100% basis. The Non-Life shareholders' equity at 100% amounted to EUR 116 million including EUR 20 million goodwill, based on the Ageas accounting and as of 31 December 2013.

Commenting on the transaction Bart De Smet, CEO of Ageas, said: "This transaction ticks a number of boxes for Ageas. First and foremost it aligns perfectly with our Vision 2015 plan and our stated ambition to increase the Group's presence in Non-Life but thanks to retaining higher net profit levels and through active capital management, Ageas is taking a further step forward towards realising its 11% insurance ROE target in 2015.  Portugal is a market that we know well, and is characterised by still low penetration rates. With our track record of very low combined ratios, we believe this market represents a promising opportunity for our Group. MBCP will continue to be an important distribution partner for our Life and Non-Life activities. At the same time it creates an opportunity to expand our distribution reach in Non-Life beyond the current channels."    

History of the partnership in Portugal The partnership between Ageas and MBCP in the Portuguese insurance market started in 2005 with the acquisition by Ageas of a 51% stake in the bancassurance joint venture Millenniumbcp Ageas from MBCP. Over the years the partnership has further developed with Millenniumbcp Ageas delivering good returns, even under difficult economic circumstances.

Positioning of Millenniumbcp Ageas The Life and Pension Funds activities are market leaders in Portugal; based on gross inflows Ocidental Vida is the 3rd largest Life insurer in Portugal (and N°1 based on Technical Liabilities); the Pension Funds business Pensõesgere is market leader. In Health insurance, Médis has developed into the 2nd largest provider of Health insurance, with a very strong brand franchise and a concept based on offering managed care services. The Non-Life company Ocidental Seguros has a N°8 position with a market share of 5 % and offers a platform for further growth in Portuguese Non-Life. Last year the Non-Life activities grew by more than 4% in a market that overall declined in volume. This counter-cyclical growth for the third consecutive year was achieved against fierce competitive conditions, without declining operating margins. The combined ratio has been constantly in the low nineties in recent years illustrating the capacity for further profitable growth.

Ageas is an international insurance group with a heritage spanning 190 years. Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business activities in Europe and Asia, which together make up the largest share of the global insurance market. These are grouped around four segments: Belgium, United Kingdom, Continental Europe and Asia and served through a combination of wholly owned subsidiaries and partnerships with strong financial institutions and key distributors around the world. Ageas operates successful partnerships in Belgium, the UK, Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India and Thailand and has subsidiaries in France, Hong Kong and the UK. Ageas is the market leader in Belgium for individual life and employee benefits, as well as a leading non-life player through AG Insurance. In the UK, Ageas is the second largest Motor insurer and has a strong presence in the growing over 50's market. Ageas employs more than 13,000 people in the consolidated entities and over 30,000 in the non-consolidated partnerships, and has annual inflows of more than EUR 23 billion.

(1) « Médis - Companhia Portuguesa de Seguros de Saúde, S.A. (« Medis »)» /« Ocidental - Companhia Portuguesa de Seguros, S.A. (« Ocidental Seguros »)»

(2) Millenniumbcp Ageas Grupo Segurador SGPS, S.A. ("Millenniumbcp Ageas")/ Ocidental-Companhia Portugesa de Seguros de Vida, S.A. ("Ocidental Vida »)/ Pensõesgere - Sociedade Gestora de Fundos de Pensoes, S.A. («  Pensões-Gere »)

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