Fortis/BNP take controlling stake in Italian carrier

Fortis and BNP Paribas Assurance are to take a majority stake (50% plus one share) in Italian insurer UBI Assicurazioni. Fortis and BNP Paribas agreed to pay €120mn ($176mn) in cash on completion of the deal, plus up to €40mn ($59mn) of additional consideration if the joint venture meets specified volume thresholds. The insurer was 100% owned by UBI Banca, one of Italy’s largest banks, which will retain the minority stake (50% minus one share). UBI Assicurazioni will continue to distribute its products through UBI Banca, which has some 2,000 branches, and about four million clients. Last year UBI Assicurazioni generated premiums of €238mn ($350mn), and had a share of about 6% of Italy’s non-l ife market. It focuses on motor, household and non-life creditor classes of business.