BNP Paribas to Form Long-term Partnership with Ageas Amid Planned EUR1.9 Billion AG Insurance Stake Sale

04:30 AM EST, 12/08/2025 (MT Newswires) -- French lender BNP Paribas (BNP.PA) agreed to sell its 25% stake in AG Insurance to Ageas (AGS.BR) for 1.9 billion euros, as the parties simultaneously confirmed a long-term investment partnership. BNP Paribas and the Belgian insurer said in separate Monday releases that the deal consolidates Ageas' position in its core Belgian market by taking complete control of AG Insurance. The transaction is expected to be finalized in the second quarter of 2026, pending regulatory approvals. "Taking full ownership of AG Insurance enables us to further advance our Belgian operations, building on the reconfirmed bancassurance partnership with our long-standing partner, BNP Paribas Fortis. Only one year into the strategic cycle, this transaction marks the second occasion on which we have been able to raise our financial targets under Elevate27," Ageas Chief Executive Officer Hans De Cuyper said. As part of the deal, BNP Paribas' insurance unit, BNP Paribas Cardif, will contribute 1.1 billion euros to increase its stake in Ageas to 22.5% from 14.9%, securing its role as a key long-term shareholder in Belgium's biggest insurer. BNP Paribas expects the sale to result in a net capital gain after tax of 820 million euros in 2026, alongside an annual recurring 40 million-euro increase to the bank's net income. On the exclusive partnership, BNP Paribas Fortis and AG Insurance are collaborating on savings, protection and property and casualty insurance for 15 years, starting in 2027. Another long-term cooperation is also being formed between AG Insurance and BNP Paribas Asset Management to leverage the latter's newly combined expertise in various asset classes. BNP Paribas CEO Jean-Laurent Bonnafé said, "We see significant potential in the growth prospects of BNP Paribas Fortis' bancassurance business through the partnership with AG Insurance, as well as the deployment of our new asset management platform's expertise created through the combination of BNP Paribas AM and AXA-IM." On Monday midday, BNP Paribas gained marginally in Paris while Ageas was up over 2% in Brussels.