AMSTERDAM (Reuters) - SNS Reaal, the bank and insurer owned by the Dutch government, said on Monday it had agreed to sell its Vivat insurance arm to Chinese financial group Anbang in a deal worth at least 1.4 billion euros ($1.60 billion).
SNS said it is selling Vivat’s equity for 150 million euros, while the Dutch state said separately the Chinese company would also inject between 770 million and 1 billion euros into Vivat to improve its solvency. Anbang will also assume 552 million euros worth of Vivat’s debt.
SNS said it would then work toward creating a standalone SNS Bank [SRSNS.UL].
SNS said it would not resume payments on some 500 million euros worth of subordinated bonds until the deal is closed, pending regulatory approval and other conditions, in the third quarter.
In December, Anbang purchased the Belgian banking operations of the Netherlands’s Delta Lloyd DLL.AS for 219 million euros.
The deals are part of a push by China’s eighth-largest life insurer to expand internationally.
SNS was formerly the fourth-largest independent financial group in the Netherlands before its nationalization in February 2013 amid losses on its real estate investments.
Reporting by Toby Sterling; editing by Jason Neely