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MILAN (Reuters) – Italian unlisted cooperative banking group ICCREA is awaiting by the end of May offers for its insurance business which it values at up to 950 million euros ($1.05 billion) in total, sources with knowledge of the matter said on Wednesday.
ICCREA bought out its partner Cattolica, an Italian insurer now owned by bigger peer Generali, after their accord expired at the end of last year and was not renewed, the three sources said.
Cattolica and ICCREA had agreed in 2019 to extend until the end of 2022 their partnership under a deal that saw Cattolica raise to 70% its ownership of their insurance joint-ventures BCC Vita and BCC Assicurazioni.
Now in possession of 100% of its insurance business, ICCREA is working with adviser KPMG to select new partners for both its life- and non-life divisions, the sources said.
Any new partner would initially acquire a 51% stake entering a five-year distribution contract, which could be later renewed for another 10 years possibly with an option to lift the stake to 70%, they said.
ICCREA Director General Mauro Pastore said in February the bank expected to select one or more partners for its insurance business by the end of the year.
BNP Paribas Cardif, Apollo-backed Athora and Apax Partners-backed GamaLife are working on possible bids for the life business, the sources said, with one person adding the valuation sought was of 600-700 million euros.
The non-life business, for which one source said the valuation sought was of 150-250 million euros, has drawn interest instead from German insurer Talanx Group, Swiss rival Helvetia Group, France’s Groupama and Italian cooperative insurer Assimoco.
All interested parties either declined to comment or had no immediate comment.($1 = 0.9052 euros)
(Reporting by Valentina Za in Milan and Amy-Jo Crawley in London; Editing by Keith Weir)
By Valentina Za and Amy-Jo Crowley
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