Novo Banco SA completed the sale of Portugal-based insurance unit GNB - Companhia de Seguros de Vida SA to GBIG Portugal SA, a vehicle of Apax Partners LLP.
London-based Apax said it would use the acquisition to launch a European life and wealth consolidation platform to be known as GamaLife. The platform is backed by funds advised by Apax and intends to build on the GNB deal as part of a wider life insurance consolidation strategy.
Novo Banco had in September 2018 announced the sale of GNB to Global Bankers Insurance Group LLC affiliate Bankers Insurance Holdings, although Global Bankers has since canceled a number of deals and announced a number of sales following difficulties related to its ultimate owner, businessman Greg Lindberg.
The transaction's fixed consideration announced earlier was €190 million, and the value achieved by Novo Banco on closing is €168 million. As of June 30, the deal would have a positive impact of €6 million on the common equity Tier 1 capital of Novo Banco.
Novo Banco and GNB Life entered into a long-term exclusive distribution agreement through which GNB Vida will look to accelerate its new product focus.