CGNU, the UK's largest insurer, is in talks to sell part of its French general insurance business to Groupama, the French insurer. The sale is part of CGNU's plan to expand its French life and long-term savings business.
CGNU, the UK's largest insurer, is in talks to sell part of its French general insurance business to Groupama, the French insurer.
The sale is part of CGNU's plan to expand its French life and long-term savings business.
CGNU said the business in question was CGU Courtage, its general insurance commercial lines business. The talks follow an original announcement in October 2001 that CGU France was starting a process to find a buyer for CGU Courtage.
CGNU and Groupama have entered a period of exclusive discussions and a further announcement will be made in due course.
The online edition of the Financial Times reported that CGU Courtage's business had net written premiums of €355m (£221.7m) in 2000, but its performance was hit in 2001 by claims arising from the storms which swept northern France in late 2000.
FT.com said that after the sale, CGNU would operate in personal lines and small commercial lines general insurance in France through Abeille assurances (tied agent distribution), which is also an important sales channel for its life and health products.
It will also operate through Eurofil (tele-direct). These two businesses had net written premiums of €695m (£434m) in 2000.
