Bank-insurer deals gain pace in Portugal

Bank and insurance groups are pursuing a series of potential transactions in Portugal that could reshape distribution partnerships and ownership links in the sector, as a more favourable European capital regime revives interest in the bancassurance model. Ageas is assessing a stake of up to 5% in BCP, while Caixa Geral de Depósitos (CGD) is considering raising its holding in Fidelidade.

An Ageas investment in BCP could be worth more than €700 million. The Belgian insurer is weighing the move as its long-running insurance distribution partnership with BCP nears expiry and as Fosun, which holds just over 20% of the Portuguese bank, considers options for its stake. In Fidelidade, which is 85% owned by Fosun, an IPO under way could value the insurer at €4.9 billion, meaning a move by state-owned CGD to increase its stake from 15% to 30% could also generate about €700 million for the Chinese group.

The backdrop is the EU’s so-called Danish Compromise, which became permanent with the implementation of CCR3 at the start of 2025. Under that framework, banks can apply a risk weighting to insurance holdings instead of deducting them from core CET1 capital, making bank-insurer ownership structures more attractive. The model also supports fee income and cross-selling through bank branches, especially in life insurance and savings products.

Other deals are also in play. France’s BPCE is moving ahead with a possible acquisition of GamaLife after buying Novobanco, with Apax said to be seeking around €600 million, as the French group looks to build a bancassurance model at the bank. Separately, French insurer CNP Assurances is considering a bid for Lusitania, owned by Associação Mutualista Montepio Geral, whose insurance assets are valued at about €270 million, although the group has flagged significant impairments linked to past crises.

Originally published at Eco.pt