Spanish insurer Mediterráneo Vida (MedVida) has started exclusive talks over the purchase of life insurer CNP Partners.
The proposed deal to buy CNP Partners, which is a Spanish unit of France-based CNP Assurances, is, however, conditional.
If materialised, this deal would see MedVida collaborating with CNP Partners to improve ties with its distribution partners as well as develop its digital channel.
The deal is said to be part of MedVida’s long-term growth plan.
In a press statement, the company said: “MedVida is focused on supporting long-term savings products and its ownership would strengthen CNP Partners’ business in Spain and Italy.”
CNP Partners oversees €2.4bn worth of investments.
It offers life-risk, lifesavings, payment protection and pension products.
These products are distributed in Spain and Italy mainly through bancassurance agreements and intermediation channels. Financial institutions and brokers are among its distribution partners along with the digital channel.
The sale would allow CNP Assurances to focus on its core risk insurance operations in Italy and Spain and simplify its business in Europe.
“As required by French law, the next step in the process will be the consultation of the involved companies’ employee representative bodies, with the aim of signing the sale and purchase agreement,” MedVida noted.
BNP Paribas served as financial adviser for MedVida.
MedVida is engaged in acquisition, integration, and administration of portfolios of savings and annuities life insurance policies.
Managing policies for more than 148,000 policyholders, the firm has total investments of more than €2.6bn.