Ageas Sells Its Stake in Tesco Underwriting to Tesco Bank for GBP104 Million
October 14 2020 - 3:27AM
Dow Jones News
By Matteo Castia
Ageas NV said Wednesday that it has sold its 50.1% stake in
Tesco Underwriting Ltd. to British grocer Tesco PLC's banking
business Tesco Personal Finance PLC.
The Belgian insurer said Tesco Bank will pay a consideration of
104 million pounds ($134.5 million) plus Ageas's part of any change
in the net asset value realized by Tesco Underwriting from June 30
until deal completion, which is expected in the second quarter of
next year.
Additionally, Ageas will receive a reimbursement of an internal
loan for an amount of GBP21 million, it said.
Tesco Underwriting is a U.K.-based nonlife joint venture between
Ageas's U.K. business and Tesco Bank, providing motor and household
insurance to the U.K. market. The partnership was set up in 2009
and was extended for seven more years at the end of 2014.
"The transaction is expected to generate a capital gain of
approximately 9 million euros [$10.6 million] and to have a
positive impact of around 3% on Ageas's solvency position," Ageas
said.
For Ageas' part, Tesco Underwriting had a book value of EUR100
million as of June 30 and generated a net profit of EUR13 million
in 2019.
Write to Matteo Castia at matteo.castia@dowjones.com
(END) Dow Jones Newswires
October 14, 2020 03:12 ET (07:12 GMT)
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