(updating with comments from Postbank, Talanx chief executives)
BONN (Thomson Financial) - Deutsche Postbank AG said it is selling its life insurer BHW Leben and BHW Pensionskasse as well as its 50 pct stakes in insurance joint ventures PB Leben and PB Versicherung to insurer Talanx for 550 mln eur.
Postbank said it expects a pretax book gain of more than 100 mln from the transaction, which is expected to close in October.
Additionally, Postbank and Talanx have agreed on a 15-years exclusive sales cooperation for life and accident insurance products, both companies said.
Chief executive Wolfgang Klein said Postbank is not planning to return the sales proceeds to shareholders via a special dividend but wants to improve its capital base as well as investing in its sales channels.
Asked about Talanx's planned initial public offering, chief executive Herbert Haas said today's acquisitions are an important step on the way but stressed that Talanx continues to watch out for further takeover opportunities abroad.
'The IPO will come and it may come sooner than we thought initially,' Haas said, but declined to specify further.
In a recent interview Haas had said the IPO would only take place after a larger acquisition worth at least 1-2 bln eur.
Postbank unit BHW Holding said the purchase price for BHW Leben and BHW Pensionskasse amounts 350-400 mln eur.
It added that the transaction is part of the new set-up in Postbank's insurance activities, which includes the sale of all insurance holdings within the group to Talanx.
According to Talanx CEO Haas, the brand BHW Leben is to be given up. The insurer's products are to be sold under the brand of PB.
German media had reported in May, that both Talanx and Munich Re's primary insurer Ergo were bidding for BHW Leben.
Talanx holds a majority stake in MDAX-listed reinsurer Hannover Rueckversicherung and plans to launch its initial public offering in the near- to medium-term future. judith.csaba@thomson.com jcs/mas/ajb COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.