MILAN, Oct 18 (Reuters) – France’s AXA and Credit score Agricole (CAGR.PA) are set to submit by the top of the week binding bids for an insurance coverage cope with Italy’s Banco BPM (BAMI.MI) after rising because the lead contenders within the race, two individuals near the matter stated.
The accord to distribute non-life merchandise by the branches of Italy’s third-largest financial institution is value round 300 million euros ($296 million), the sources stated.
The worth tag was larger earlier than Banco BPM in August determined to carry onto its life insurance coverage enterprise, after buying full management of the enterprise by shopping for out its earlier associate Covea.
The race pits French insurer AXA, which already companions with Monte dei Paschi di Siena (BMPS.MI) in Italy, towards Credit score Agricole, the only greatest investor in Banco BPM.
Credit score Agricole has purchased 9.2% of Banco BPM this yr with a view to increasing their strategic partnerships past shopper finance. Insurance coverage and asset administration, which Banco BPM has put on the core of its revenue technique, are seen as the apparent candidates.
The sources stated additionally Assicurazioni Generali (GASI.MI) is within the working, including nonetheless the Italian insurer’s provide had fewer probabilities of success.
Banco BPM, AXA, Credit score Agricole and Generali all declined to remark.
The sources stated Banco BPM would possible take just a few weeks to resolve as soon as it receives the gives.
Banco BPM CEO Giuseppe Castagna lately stated the financial institution was in no rush to pick out an insurance coverage associate. In August Banco BPM had indicated it could take a choice by the top of the yr.
After ending the accord with Covea, by mid-2023 Banco BPM additionally has the choice of an early exit from an insurance coverage partnership with Cattolica, a unit of Generali.
If Banco BPM have been to train the decision possibility on the Generali enterprise it may fold the non-life enterprise into the deal it’s within the technique of putting, it has stated.
Reporting by Andrea Mandala; Enhancing by Valentina Za
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