Home » Banco BPM: Call option on 81% of Bipiemme Vita, a JV with Covéa in the bancassurance sector

Banco BPM: Call option on 81% of Bipiemme Vita, a JV with Covéa in the bancassurance sector

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Banco BPM: Call option on 81% of Bipiemme Vita, a JV with Covéa in the bancassurance sector
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Banco BPM exercised the option to purchase from partner Covéa Coopération of 81% of the share capital of Bipiemme Vita, an insurance company operating in the life sector, of which Banco BPM already owns a 19% stake. Bipiemme Vita in turn holds 100% of the share capital of Bipiemme Assicurazioni, operating in the non-life branch. The operation anticipates the timing of the internalisation of the company with respect to what is indicated in the 2021-2024 Strategic Plan.
The strike price of the call referring to 81% of Bipiemme Vita’s capital, based on the corresponding level of Unrestricted Tier1 as at 30 June 2021, is estimated at € 310 million. Following the closing, as part of the operations to optimize the company’s assets, an extraordinary dividend of 120 million euros is expected, consisting of retained earnings reserves, for the benefit of Banco BPM as sole shareholder. Considering the benefits of applying the so-called Danish Compromise, to be calculated subject to the issue of the related authorization by the ECB, the exercise of the option would have an estimated positive effect of +5 bps on the CET 1 Ratio; excluding these benefits, the exercise of the call option would instead determine a negative impact estimated at -32 bps on the Group’s CET 1 Ratio. Exercising the call option relating to 81% of Bipiemme Vita’s share capital will have a positive effect on the Group’s net profit estimated at around 29 million for 2023.

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