The discussions between Groupe BPCE and La Banque Postale, aiming at deepening and expanding their business partnership, have reached a new milestone
Following the announcement of 4June, Groupe BPCE and La Banque Postale continued their discussions making a significant step forward by setting the main principles of the expanded business partnership between the two groups.
Combination of the asset management activities
The main principles of the contemplated combination of the Ostrum AM and La Banque Postale Asset Management (LBPAM) have now been agreed.
The contemplated combination aims at creating a European asset manager focused on insurance-related euro fixed-income management activities, with the ambition to be 100% compliant with socially responsible investing (SRI) principles. The asset management activities contributed by LBPAM would continue to be carried out in line with its own SRI standards. The combined entity, which will benefit from a cutting-edge technology and operating platform, will be able to offer quality services to the two groups’ large long-term insurance partners as well as third-party insurance clients. With more than €400bn assets under management, it would become one of the largest European players.
This long-term partnership would be organised around a joint venture with a balanced governance structure, in which Natixis Investment Managers will be a majority shareholder along with LBPAM, which itself will remain majority-owned by La Banque Postale.
Natixis Investment Managers and La Banque Postale Asset Management will pursue their discussions further. The objective is to reach a binding agreement in Q1 2020, after completion of the information and consultation procedures with the staff representative bodies of the respective entities. The completion of the transaction is subject to the usual conditions precedent to this type of transaction, notably obtaining the regulatory authorisations of the competent authorities, expected by first half 2020.
Agreements with CNP Assurances
Groupe BPCE and CNP Assurances have agreed to extend, as of 1 January 2020, the agreements entered into in 2015 between BPCE/Natixis and CNP Assurances (ADE, collective savings and health products, in particular) from 31 December 2022 to 31 December 2030.
Also starting from 1 January 2020, the change in the ADE (credit insurance) coinsurance allocation to 50-50% between Natixis Assurances (ABP Vie and ABP Prévoyance) and CNP Assurances would become effective.
This project to extend the historical agreements, which would support the multi-stakeholder model of CNP Assurances, was presented to the Board of Directors of CNP Assurances on this day, and was positively received. The aim is to sign the respective amendments by the end of 2019.
Shareholders’ agreement concerning CNP Assurances
Concomitantly with the combination of CNP Assurances and La Banque Postale scheduled for Q1 2020, and following the termination on 26 June by La Banque Postale of the current shareholders’ agreement relating to CNP Assurances that expires next 31 December, BPCE and La Banque Postale would enter into a new shareholders’ agreement in their capacity as shareholders of CNP Assurances, holding respective stakes of 16.11% and 62.13%. This new shareholders’ agreement would be in force until end-2030.
BPCE would thus remain represented in the Board of Directors of CNP Assurances and its specific committees.
Groupe BPCE, with its business model as a universal cooperative bank represented by 9 million cooperative shareholders, is currently the 2nd-largest banking group in France. With its 105,000 employees, it serves a total of 30 million customers – individuals, professionals, corporates, investors, and local government bodies – around the world. It operates in the retail banking and insurance sectors in France via its two major Banque Populaire and Caisse d’Epargne banking networks, along with Banque Palatine. With Natixis, it also runs global business lines specializing in asset & wealth management, corporate & investment banking, and payments. Through this structure, it is able to offer its customers a comprehensive, diversified range of products and services: solutions in savings, investment, cash management, financing, and insurance. The Group's financial strength is recognized by four financial rating agencies: Moody's (A1, outlook stable), Standard & Poor's (A+, outlook stable), Fitch (A+, outlook stable) and R&I (A, outlook positive).
La Banque Postale, a subsidiary of Groupe La Poste, operates in the retail banking, insurance and asset management markets. As a bank whose mission is to work in the best interest of the community, it supports its customers by offering a sustainable banking relationship with a comprehensive range of reasonably priced and accessible products and services. As a local bank providing a public service, La Banque Postale meets the needs of each and all: private individuals, businesses, professionals and the local public sector. It serves its customers through the Post Office network, on-line and over the telephone as part of a fully multi-channel relationship.
La Banque Postale at a glance:
- 5,570 billion euros in NBI
- 10.3 million active customers
- close to 365,000 legal and local public entity customers
- 8.2 million bank cards
Figures at end-2018
Natixis is a French multinational financial services firm specialized in asset & wealth management, corporate & investment banking, insurance and payments. A subsidiary of Groupe BPCE, the second-largest banking group in France through its two retail banking networks, Banque Populaire and Caisse d’Epargne, Natixis counts nearly 16,000 employees across 38 countries. Its clients include corporations, financial institutions, sovereign and supranational organizations, as well as the customers of Groupe BPCE’s networks. Listed on the Paris stock exchange, Natixis has a solid financial base with a CET1 capital under Basel 3(1) of €11.1 billion, a Basel 3 CET1 Ratio(1) of 11.6% and quality long-term ratings (Standard & Poor’s: A+ / Moody’s: A1 / Fitch Ratings: A+).
(1) Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phasein.
Figures as at 31 March 2019