Ageas to take full ownership of AG Insurance and formalise long term partnership with BNP Paribas

Core Insights - Ageas has announced the acquisition of the remaining 25% stake in AG Insurance from BNP Paribas Fortis for EUR 1.9 billion, resulting in Ageas becoming the 100% owner of Belgium's leading insurer [2][4] - This acquisition aligns with Ageas's Elevate27 strategic goals, enhancing its focus on cash-generative activities and raising financial targets, including an increase in holding free cash flow from EUR 2.3 billion to EUR 2.6 billion [3][10] - A long-term relationship agreement has been established with BNP Paribas, allowing them to maintain a significant shareholding while respecting Ageas's autonomy [6][11] Financial Implications - The acquisition is expected to generate a levered return on invested capital (ROIC) of 15 to 16% and strengthen Ageas's capital position [4] - The transaction will be financed through a combination of cash reserves, existing financing facilities, and flexibility in the debt capital market [5] Strategic Partnerships - Ageas and BNP Paribas have reaffirmed their long-standing bancassurance partnership, which will continue for 15 years starting in 2027, enhancing distribution and asset management collaboration [8][9] - BNP Paribas will have the right to nominate a representative to the Ageas Board of Directors, reinforcing their strategic partnership [7]