Mediterráneo Vida (MedVida) has entered exclusive negotiations with the French company CNP Assurances for the acquisition of its Spanish subsidiary CNP Partners. The transaction is subject to certain conditions precedent.
CNP Partners is a life insurance company domiciled in Spain specialising in savings products, which it distributes mainly through bancassurance agreements and intermediation channels in Spain and Italy. It manages investments of €2.4 billion.
MedVida is a Spanish lifesavings and annuity insurance company, that manages policies for more than 148,000 policyholders and total investments of more than €2.6 billion.
The proposed transaction forms part of MedVida's long-term growth strategy, with funding provided by its shareholders. MedVida is focused on supporting long-term savings products and its ownership would strengthen CNP Partners' business in Spain and Italy. Under the proposed transaction, MedVida would work with the existing CNP Partners team in both countries to strengthen ties with its distribution partners, including financial institutions, brokers, and intermediaries, and develop its digital channel.
As reported by CNP Assurances, the sale would simplify CNP Assurances' European operations and allow it to focus on developing its core risk insurance business in the Spanish and Italian markets.
As required by French law, the next step in the process will be the consultation of the involved companies' employee representative bodies, with the aim of signing the sale and purchase agreement.
BNP Paribas acted as MedVida's financial advisor.
About MedVida
MedVida is a Spanish lifesavings and annuity insurance company that specialises in helping insurers manage portfolios that are no longer strategic priorities for them, through both acquisition and reinsurance. MedVida's shareholder is Elliott Investment Management, through Ember Capital, a vehicle that is backed by investors such as employee and retiree pension funds, universities, foundations, sovereign wealth funds and other social institutions that have a long-term investment time horizon. MedVida manages policies for more than 148,000 policyholders and total investments of more than €2,600 million. The solvency ratio at the end of 2020 exceeded 240%.
About CNP Assurances
CNP Assurances is a leading company in the French personal insurance market. It operates in 19 countries, 17 of them in Europe, especially in Italy, and Latin America, where it is very active in Brazil, its second largest market. As a provider of insurance, coinsurance, and reinsurance, it has 36 million policyholders in risk/personal protection policies worldwide, and more than 11 million in pension savings products. In line with its business model, its solutions are distributed by multiple partners and are adapted to both physical and digital distribution, as well as to the needs of customers in each country in which it operates.
The company has been listed on the Paris Stock Exchange since October 1998 and is a subsidiary of the public entity Banque Postale. In 2021, it posted a net profit of €1,552 million.
About CNP Partners
CNP started its operations in Spain in 2004. The company, which changed its name to CNP Partners in 2014, markets a wide range of life-risk, lifesavings, payment protection and pension products. It distributes its products through financial institutions, brokers, and mediators, as well as through the digital channel. The company manages €2,056 million in technical provisions.
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