KBC Acquires the Remaining 40% of UBB-Metlife
The owner of UBB, the Belgian bank-insurance group KBC, acquires the remaining 40% of the life insurance company UBB-Metlife, the bank said.
The agreement between Metlife and KBC was reached on December 29, 2017. The Belgian group will acquire Metlife's stake through its Bulgarian insurance company DZI. Transaction price is not reported. It is only indicated that "the financial impact of this transaction on KBC and Metlife is negligible". The announcement also states that the deal is still subject to regulatory approval and is expected to be completed in the second quarter of 2018.
KBC acquired 60% of UBB-Metlife for the purchase of UBB and the other companies owned by the Greek NBG in 2017. The price it paid for the bank and the other companies was 610 million euros. The remaining 40% of the mixed life insurance company was not the subject of last year's deal, with separate dealings with the owner of the Metlife insurer. Now 60% of UBB-Metlafe will move to DZI together with newly acquired 40%. Thus, DZI acquires 100% of the ownership of UBB-MetLife and the products will be offered by DZI. After the deal is completed, KBC will, through DZI, service the insurance policies of existing UBB-Metlife clients until their expiration.
UBB-Metlife's life insurance products are sold only in the branches of UBB. The company has a 10% market share in the Bulgarian life insurance market and offers a full range of life insurance products. Combined DZI and UBB-Metlife will have a 21% market share in the Bulgarian life insurance market.
The announcement states that the Bulgarian market is one of the main markets for KBC. KBC Group Chief Executive Officer Johannes Tees commented that the deal strengthens its position on the local market.
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