Ageas sells its Pension and Life activities in Turkey

Ageas announces it has reached an agreement with BNP Paribas Assurance on the sale of its Pension and Life activities in Turkey. Fortis Emeklilik ve Hayat had Gross Written Premiums of €62 million in 2009. The transaction is likely to result in a limited capital gain.

Ageas acquired the insurance activities in Turkey in 2005, as part of the acquisition of Disbank by Fortis Bank. Since that time, insurance inflows have more than doubled from €29 million in 2005 to €62 million as at the end December 2009, and distribution channels have also been expanded.

This divestment is in line with the company's intention, announced in September 2009, to streamline its current portfolio against certain criteria. Specifically, businesses are expected to reach a critical size, make a meaningful contribution to the net result and have the capacity to generate returns that exceed the cost of equity.

Ageas considers the new owner to be ideally placed to develop the franchise in the future with the support of the employees.

This transaction, which is subject to regulatory approval, is expected to close in the last quarter of 2010.