Anbang to buy SNS insurance arm in USD1.6 bn deal

SNS Reaal, the bank and insurer owned by the Dutch government, has said it had agreed to sell its Vivat insurance arm to Chinese financial group Anbang in a deal worth at least EUR1.4 billion (USD1.60 billion).

SNS said it is selling Vivat's equity for EUR150 million, while the Dutch state said separately that the Chinese company would also inject between EUR770 million and EUR1 billion into Vivat to improve its solvency. Anbang will also assume EUR552 million worth of Vivat's debt.

SNS said it would then work towards creating a standalone SNS Bank. It would not resume payments on some EUR500 million 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 for EUR219 million.

The deals are part of a push by China's eighth-largest life insurer to expand internationally.