ABN Amro to sell Neuflize Vie stake to BNP Paribas Cardif

ABN AMRO, through its French private bank branch Neuflize OBC, has entered into exclusive negotiations with BNP Paribas Cardif to form a 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.

ABN Amro says that BNP Paribas Cardif “intends to acquire all shares in Neuflize Vie for an undisclosed amount,” adding that the combination will “constitute an undisputed leader in high-end life insurance in France.”

This development comes on the heels of ABN Amro’s announcement of a net profit increase in the first quarter of 2024, signalling a period of robust financial health and strategic repositioning for the Dutch banking giant.

The proposed partnership would result in ABN Amro’s sale of its stake in the life insurance joint venture Neuflize Vie to BNP Paribas Cardif. Neuflize Vie, a collaboration between ABN Amro (60%) and AXA (40%), has been a significant player in the French insurance market. The acquisition by BNP Paribas Cardif is poised to create a powerhouse in high-end life insurance, with assets under management exceeding €25 billion.

In addition to the sale, a distribution agreement is on the table, ensuring that Neuflize OBC’s clients maintain access to premium insurance products. This strategic move is expected to have a marginal impact on ABN Amro’s profitability and risk-weighted assets, with a slight positive effect on the bank’s CET1 capital ratio.

While the transaction is still subject to regulatory and competition authority approvals, the potential partnership between BNP Paribas Cardif and Neuflize Vie marks a pivotal moment in the European insurance landscape. The deal underscores a trend of consolidation and strategic alliances within the industry, aimed at enhancing service offerings and expanding market reach.

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