Belgian insurance group Ageas has finalized the sale of its stake in Tesco Underwriting to Tesco Bank, he said on Tuesday. All regulatory approvals have been obtained and the transaction has therefore been completed.
On October 14, Ageas and Tesco Bank announced an agreement for the acquisition by Tesco Bank of Ageas UK’s 50.1% stake in Tesco Underwriting. It is the UK-based Non-Life insurance joint venture created by Ageas UK and Tesco Bank.
This partnership began in 2009 and was extended for a period of seven years at the end of 2014.
Ageas UK expects to receive total cash proceeds of £ 111 million (nearly € 128 million) from this transaction since its announcement. “The subordinated debt issued by Tesco Underwriting and subscribed by Ageas UK for an amount of 21 million GBP (pounds sterling, or some 24 million euros, Editor’s note) was also repaid on the occasion of the closing”, adds the group. “This transaction is expected to have a positive impact of 3 percentage points on the solvency position of the Ageas group, based on the figures for the year 2020.”