Disposal

RNS Number : 8473S

Legal & General Group Plc

13 July 2015

 



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 problems. 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."

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For further information, please contact:

Investors:

Laura Doyle                       Head of Investor Relations                                                                                       020 3124 2088

Media:

John Godfrey                     Corporate Affairs Director                                                                                         020 3124 2090

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.

Forward-looking statements

This announcement may contain certain forward-looking statements relating to Legal & General, its plans and its current goals and expectations relating to future financial condition, performance and results. By their nature, forward-looking statements involve uncertainty because they relate to future events and circumstances which are beyond Legal & General's control, including, among others, UK domestic and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory and Governmental authorities, the impact of competition, the timing impact of these events and other uncertainties of future acquisition or combinations within relevant industries. As a result, Legal & General's actual future condition, performance and results may differ materially from the plans, goals and expectations set out in these forward-looking statements and persons reading this announcement should not place reliance on forward-looking statements. These forward-looking statements are made only as at the date on which such statements are made and Legal & General Group Plc does not undertake to update forward-looking statements contained in this announcement or any other forward-looking statement it may make.

 

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