UBI restructures non-life insurance JV, boosts CET 1
MILAN Aug 6 (Reuters) - Italy's fifth-biggest bank UBI said on Wednesday it would restructure an existing joint venture with Ageas Group and BNP Paribas Cardif in non-life insurance products that will boost the lender's Common Equity Tier 1 ratio by 7 basis points.
Under the agreement, UBI Banca will transfer its stake in UBI Assicurazioni to Ageas and BNP Paribas Cardif. The parties have also signed a new agreement for the distribution of UBI Assicurazioni's products, the bank said in a statement.
"The transaction will involve a net gain of approximately 27 million euros ($36.09 million), which, together with the reduction in risk weighted assets relating to the stake transferred, will result in a benefit in terms of the CET1 ratio of approximately 7 basis points," it said. (1 US dollar = 0.7482 euro) (Reporting by Agnieszka Flak; Editing by Oleg Vukmanovic)