La Banque Postale completes acquisition of CNP Assurance

Bank Postal, a major shareholder of CNP Assurance since 2020, did not hide its desire to take full control of the French leader in borrower insurance. Indeed, it is important to know that La Poste’s subsidiary has increased share repurchases until the final takeover bid begins on May 2.

The merger of CNPAssurances and La Banque Postale began shortly before the outbreak in France began. In March 2020, the state completed its first business, which consisted of the establishment of a major public financial center.

In this first phase, the Caisse des Dépôts, La Poste, La Banque Postale and France exchanged and transferred securities. La Banque Postale manages 62.13% of insurance companies after this first phase. After that, he gradually increased his capital, repurchased the shares held by BPCE, and then repurchased a part of the free float. Since the end of May, La Poste’s subsidiaries own almost all insurance companies.

New internationally existing beneficiary entity

In recent years, La Poste’s email business has been mercilessly declining due to the digitization and digitization of communications. Therefore, public groups are looking for ways to enable them to reconnect to profitability and growth. After Geopost, the brand has focused on financial activities where life insurance performance and other savings products attract savers.

Acquisition of the CNP Assurance capital balance is done in this context. The company plays a very important role in the insurance and life insurance market for borrowers in France and other countries. Brazil with about 20 million customers.. La Banque Postale will rely on this branch abroad to promote international expansion and increase awareness there.

CNP Assurance also brings financial stability At the purlin. Without insurance company results, La Poste would have suffered a historic loss in 2020.During this fiscal year, insurance companies A quarter of sales and almost half of operating profit. Due to this merger

importantLa Banque Postale officially obtains the status of the Bancassurance Giants. The group manages a portfolio of over 60 million customers, including 20 million in France, and a balance sheet of € 800 billion.

Major financial institutions conquering new markets

According to an AMF press release

importantLa Banque Postale currently controls over 97.79% of CNP Assurances’ capital.

This latest capital increase is the result of a bid to take over a 15% stake not yet owned by a La Poste subsidiary in early May.

The bank has promised to buy back each title at a price of € 21.90. The transaction will increase the end result by 50% and insurers will generate a profit of € 500 million annually. In total La Banque Postale will be spending € 5.5 billion Full control over CNP. His boss, Philippe Heim, sees this as a profitable investment given the potential growth of the insurance industry.

With this merger, the Group continues to develop the bank insurance company model and expands its presence in new markets. The revenue provided by CNP is essential to fund Bank Postal projects such as the launch of the Louvre Museum and the launch of the installment market. As expected, CNP Assurance’s share needs to withdraw from the market at the end of June.