By Dominic Chopping

BNP Paribas will increase its stake in Belgian insurance group Ageas as part of a two-pronged deal valued at a combined 3 billion euros ($3.49 billion), the companies said Monday.

The agreement will see BNP Paribas' insurance unit pay 1.1 billion euros to increase its stake in Ageas to 22.5% from 14.9% currently. BNP Paribas Cardif will pay 60 euros a share for the stake, a slight premium to Friday's closing price of 56.90 euros.

"As a long-term shareholder, the BNP Paribas Group will thereby strengthen Ageas' capacity for growth while preserving its autonomy and independence," French banking and financial services group BNP Paribas said in a statement.

At the same time, BNP Paribas will sell its 25% stake in Belgian insurance provider AG Insurance to Ageas for 1.9 billion euros.

For Ageas, the agreement gives it full ownership of AG Insurance, aligning with part of its strategic plan to focus on growth in consolidated and cash-generative business. As a result of the agreement, Ageas expects to lift free cash flow and shareholder remuneration targets.

"Taking full ownership of AG enables us to further advance our Belgian operations," Ageas Chief Executive Hans De Cuyper said.

BNP Paribas will be entitled to nominate one representative to the Ageas board and will also retain one representative on the board of AG.

The French company expects the deal to result in a net capital gain after tax of 820 million euros in 2026.

Completion is expected in the second quarter of next year, subject to regulatory approvals.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

December 08, 2025 06:35 ET (11:35 GMT)

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