Multinational insurer, Ageas, will sell its majority stake in the joint venture of Tesco Underwriting to Tesco Bank.
Tesco Bank will pay a consideration of £104m for the 50.1% of shares owned by Ageas. Additionally, Ageas will be owed a part of any change in the net asset value attained by Tesco Underwriting, as well as the reimbursement of a £21m internal loan.
The joint venture was set-up in 2009 and provided motor and household insurance to the UK market. As of 30 June the company had a book value of £91m.
The transaction remains subject to regulatory approvals and is set to be completed by the second quarter of 2021.
Bart De Smet, CEO of Ageas, said: “I would like to take this opportunity to thank the management team and the staff of Tesco Underwriting and Tesco Bank for their loyalty, hard work and valuable contribution to the success of the joint venture over the past decade.
“We wish our former partner and colleagues every success with the continuation of the activity.”