February 13, 2018 / 7:49 AM / a year ago

UPDATE 1-NZ's CBL Corp to exit French construction insurance business

(Recasts, adds closure details, background)

Feb 13 (Reuters) - New Zealand’s CBL Corp Ltd said on Tuesday it will exit its capital-intensive French construction insurance business as it shifts focus to more profitable core businesses.

This will help it deliver ongoing value to shareholders as well as a higher return on equity, Auckland-based CBL said in a statement.

The insurance company said exit options include the sale of the insurance book, along with divestment of distribution and operational networks of certain associates, including European Insurance Services Ltd and Securities and Financial Solutions Europe SA (SFS).

CBL did not mention any specific charges from the closure.

It bought a 71 percent stake in SFS and IMS Expert Europe SA for NZ$150 million ($109.08 million) in January last year.

The company will announce its full-year results on Feb. 27. (Reporting by Aditya Soni in Bengaluru, Editing by Sherry Jacob-Phillips)

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