PARIS (Thomson Financial) - CNP Assurances said it has agreed to form an
alliance with Marfin Popular Bank under which the French insurer will acquire a
50.1 percent stake in MPB's insurance activities in Greece and Cyprus.
CNP said it will assume management control of the insurance businesses, and
will also enter a 10-year renewable exclusive distribution agreement with MPB,
with an extension option in the countries where its partner develops.
"This insurance partnership is expected to be extended to other countries in
the future along with MPB's international expansion in Southern & Eastern
Europe," the French company said.
Under the agreement, CNP said it will make an upfront payment of 145 million
euros to MPB, followed by 20 million euros depending on business objectives and
another 20 million euros as a pre-dividend.
"This self-financed transaction will have a positive impact on CNP's
earnings per share from 2009 and will be neutral from a solvency perspective,"
the French insurer said.
tfn.paris@thomsonreuters.com
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