Ageas sells its majority stake in Tesco Underwriting

Ageas has agreed to sell its 50.1% stake in Tesco Underwriting to Tesco Bank.

Tesco Underwriting was established in 2009 as a joint venture between Ageas and Tesco Bank to provide motor and home insurance to the UK market.

Tesco Bank will buy Ageas’s stake in Tesco Underwriting for a total consideration of £104m plus Ageas’s part of any change in the net asset value realised by Tesco Underwriting from 30th June 2020 until closing.

Additionally, Ageas will receive a reimbursement of an internal loan for an amount of £21m.

The transaction is expected to generate a capital gain of approximately £8m and to have a positive impact of around 3% on Ageas’s solvency position based on the second quarter 2020 figures.

Bart De Smet, CEO of Ageas, said: “I would like to take this opportunity to thank the management team and the staff of Tesco Underwriting and Tesco Bank for their loyalty, hard work and valuable contribution to the success of the joint venture over the past decade. We wish our former partner and colleagues every success with the continuation of the activity.”

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