Legal & General in talks to sell French insurance unit to APICIL
Legal & General has entered into exclusive talks to sell its French insurance unit to APICIL for an undisclosed sum.
FTSE 100
7,877.05
17:14 18/04/24
FTSE 350
4,334.00
17:14 18/04/24
FTSE All-Share
4,290.02
16:54 18/04/24
Legal & General Group
245.00p
17:05 18/04/24
Life Insurance
5,738.19
17:14 18/04/24
L&G’s chief financial officer, Mark Gregory, said: “We have an increasingly focused strategy and our French business is no longer a core operation for us. Legal & General France has strong potential: which can be realised by combining it with APICIL's established strengths in the French market."
Philippe Barret, the managing director of French insurer APICIL, said: “Once the transaction is confirmed, we will be pleased to welcome L&G France, its successful teams and business partners within the APICIL Group.
"This acquisition will definitely accelerate APICIL's growth in its two strategic markets: Life Insurance and Medical, death and disability Insurance. The acquisition will nicely complement our recent acquisition of Skandia (France / Luxembourg) and our existing businesses".
Whitman Howard analyst Craig Bourke said he would expect L&G’s French insurance unit to fetch in the region of £100m.
“The announcement follows recent disposals of its offshore business and Egypt operation and we believe indicates a renewed focus of the group on its corporate risk and asset management business that should become much more apparent once Solvency II is clarified at the end of this year,” he said.
At 0927 BST, L&G shares were down 0.1% at 259.90p.