mBank to start strategic co-operation with AXA

mBank to start strategic co-operation with AXA

BRE Ubezpieczenia Towarzystwo Ubezpieczeń i Reasekuracji to change the owner and mBank Group to gain a strategic partner in insurance.

On September 11, 2014, mBank's subsidiary Aspiro being the shareholder of BRE Ubezpieczenia Towarzystwo Ubezpieczeń i Reasekuracji S.A. (BRE TUiR), concluded with AXA the agreement on the sale of 100% of shares of BRE TUiR.As part of the transaction, after the fulfilment of the conditions precedent, i.e. obtaining necessary approvals of the Competition and Consumer Protection Office (UOKiK) and the Polish Financial Supervision Authority (KNF), the agreements regulating the long-term cooperation between mBank and AXA with regard to the distribution of life and property insurance products for at least 10 years will be concluded.The total amount of payments to mBank Group on account of the said agreements with AXA Group entities will be c. PLN 570 million. Moreover, the Bank and Aspiro are entitled to an additional earn-out consideration subject to achieving certain targets of life insurance products sales. The one-off impact of the transaction on mBank Group’s consolidated pre-tax profit is estimated at approximately PLN 180 million.– We came to the conclusion that the logical step after realising the full potential of BRE TUiR within the Group should be a strategic co-operation with a leading insurance company. AXA is a global leader in insurance and its proven track record in bancassurance in numerous countries gives us the confidence that we made the right choice – said Cezary Stypułkowski, CEO of mBank.

 – Our co-operation with AXA will translate into even wider product range and the best quality of service for customers of mBank Group. Clients will gain access to the state-of-the-art insurance products, offered via electronic and mobile platforms as well as traditional outlets. New mBank and its mobile version were created in order to provide our clients with a full range of financial products and services in a most convenient way possible – our strategic agreement with AXA is a natural step to fully leverage on the potential of internet and mobile platforms – Stypułkowski added.

mBank started its insurance business 8 years ago when it established BRE TUiR. Currently, the banks services almost 3.8 million customers.The AXA Group is a worldwide leader in insurance and asset management, with 157,000 employees serving 102 million clients in 56 countries. In 2013, its revenues amounted to EUR 91.2 billion. AXA Group has been operating in Poland since 2006.UBS Investment Bank acted as sole financial advisor to mBank S.A.