Banco BPM has exercised the call option against Cattolica Assicurazioni on 65% of the share capital of Vera Vita and Vera Assicurazioni.
These will allow Banco BPM to create one of the main national captive groups in Life Bancassurance and to expand the range of “Life” products available to customers and increase the integrated offer in Wealth Management.
In addition, the transaction will make it possible to increase revenues from commissions with a significant impact on the Group’s profitability and to achieve important synergies between the Group’s product factories thanks to the increase in “Life” insurance volumes.
The exercise price of the call option was defined, in compliance with the provisions of the agreements with Cattolica Assicurazioni, on the basis of the sum of the following elements:
- 65% of the Own Funds of the companies as at 31.12.2022, net of T2 instruments, totaling €332.5 million;
- a fixed component of €60 million.
These elements lead to a value for the exercise price of the call option for the repurchase of both investments in a total of 392.5 million euro, to which must be added the 65% of the operating results of the companies accrued from 1 January 2023 until closing date.
From a regulatory point of view, the operation will benefit from access to the benefits deriving from the application of the Danish Compromise.