Barclays plc initiates discussions for the sale of Barclays Vie

Monday, June 14, 2010

It has been reported in the French broadsheet La Tribune that Barclays are opening negotiations to sell half of its French life insurance business, Barclays Vie. The banking organisation looks set to sell a fifty percent share of its life insurance division in France for a reported €65 million.

The French media are reporting that a number of European insurance providers including Aviva, Generali, Axa, CNP Assurance, AG2R La Mondiale, Swiss Life and Allianz are showing interest in purchasing the business. It is thought that the deal would mirror the events which led to Barclays securing a joint life insurance operation in Italy, Spain and Portugal with French insurance giants CNP Assurances two years ago.

When Barclays entered discussions with CNP, these culminated in the company selling a fifty percent stake in Barclays Vida y Pensiones Compañía de Seguros, the Liberian life insurance and pensions subsidiary, for €140 million. At the time, it was agreed that there would be an additional €450 million included in the contract, which would be payable over a twelve-year period, linked to achievement in specified areas. Barclays entered in to a 25-year agreement, which covered the distribution of products through their network in Spain, Italy and Portugal.

The media is stating that there has been a huge amount of interest among European insurers looking to purchase the share of the company, and there is as yet no news relating to which insurer may be successful in negotiations to secure the deal.

With over 300 years of history and expertise in banking, the Barclays financial group operates in over 50 countries worldwide and employs more than 144,000 people. Barclays moves, lends, invests and protects money for more than 48 million customers and clients across the globe.