BNP Paribas plans to increase its stake in Belgium’s largest insurer Ageas to 22.5% from 14.9%, cementin
g its position as top anchor investor in a two-leg transaction worth 3 billion euros ($3.5 billion), the companies said on Monday.
The deal involves France’s biggest bank selling its 25% stake in AG Insurance to Ageas for 1.9 billion euros while simultaneously investing 1.1 billion euros into Ageas
through its insurance subsidiary BNP Paribas Cardif, based on an agreed price of 60 euros per share. Ageas’s share price closed at 56.9 euros on Friday.
For Ageas, the transaction gives it full control of Belgium’s biggest insurer AG Insurance, while BNP Paribas pivot
s from direct ownership in AG Insurance to a stronger position in the parent company.
“We see significant potential in the growth prospects of BNP Par
ibas Fortis’ bancassurance business through the partnership with AG Insurance,” BNP CEO Jean-Laurent Bonnafe said.
Free Cash Flow Target Raised
The framework agreement signed on Sunday includes a renewed
exclusive bancassurance partnership between AG Insurance and
BNP’s Belgian subsidiary. The companies will also form a new investment partnership between A
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G Insurance and BNP Paribas’ asset management arm. The French bank will nominate one director to Ageas’ board as part of the deal, Ageas said.
The euro zone’s biggest lender by assets said the transaction wou
ld bring it a net capital gain after tax of 820 million euros in 2026 and boost its net income by 40 million euros annually on a recurring basis.
Due to the planned acquisition of AG’s stake, Ageas raised its free cash flow target for 2027 to 2.6 billion euros fro
m a previous target of 2.3 billion and expects to increase shareholder remuneration to 2.2 billion euros from 2 billion euros.
BNP became Ageas’ largest shareholder last year after agreeing to buy a 9% stake in Ageas from China’s Fosun Group.
The deal is expected to close in the second quarter of 2026, the companies said.
($1 = 0.8580 euros)
(Reporting by Inti Landauro and Mathieu Rosemain; editing by Sudip Kar-Gupta and Susan Fenton)