La Banque Postale SA signed a nonbinding memorandum of understanding with Groupama Group to acquire the latter's 35% stake in joint venture La Banque Postale IARD.
The financial terms of the deal, which is subject to regulatory approval and the usual procedures with employee representatives, were not disclosed. The transaction is expected to complete in the first half of 2020.
Following the completion of the deal, La Banque Postale will become the sole owner of the joint venture, while the service agreements and reinsurance treaties between La Banque Postale IARD and Groupama's subsidiaries Groupama PJ and Mutuaide will be transferred as part of a long-term partnership.
La Banque Postale IARD was established in 2009 to market property and casualty insurance products to La Banque Postale's retail customers. The company has an insurance portfolio of 1.8 million policies.