Legal & General sells Egyptian life insurance joint venture to AXA
Legal & General Group Plc and Commercial International Bank SAE (CIB) have today jointly announced the sale of Commercial International Life Insurance Company SAE (CIL) to AXA for 763m EGP ($97.5m USD), subject to financial adjustments at completion. CIL is jointly owned by Legal & General with 55%, and CIB with 45% respectively.
CIL was formed in 1998 and was the first life insurance company in Egypt to adopt the bancassurance model. In 2014 it was ranked No.3 in the Egyptian life insurance market for new written retail premiums. It has 90,000 individual insurance policies, and provides retirement benefits group life and credit life insurance for circa 350,000 customers.
Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to take place by the end of 2015.
Simon Burke, Managing Director Emerging Markets for Legal & General said: "Legal & General is delighted to have been part of the success of CIL for the past 17 years, and pleased to see the positive impact that life insurance has delivered to its Egyptian customers. Legal & General's strategy of building scalable, customer focussed, long-term businesses has been achieved in Egypt, and now is the right time to hand the business over."
Notes to editors
Legal & General Group Plc
Established in 1836, Legal & General is a leading provider of insurance, savings and investment management products in the UK. The Group has a market capitalisation of £15.7bn (as at 10 July 2015) and is responsible for investing £737bn worldwide (as at 31st March 2015) on behalf of investors, policyholders and shareholders. We have over 10 million customers in the UK and US for life assurance, pensions, investments and general insurance plans. In 2014, Legal & General's operating profit (on the IFRS basis) was £1,275m and earnings per share were 16.70p for the period, an increase of 10% for both respectively. Legal & General's dividend per share was 11.25p for 2014, up 21% on the prior year's 9.30p per share.
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