Spanish insurer Mapfre said that it had sold its stake in Bankia’s insurance business to Caixabank in a 571 million-euro ($645.12 million) deal. This is although it has begun arbitration that could increase the value. Caixabank, which took over Bankia in March, has agreed to pay 324 million euros. And that too for Mapfre’s 51% stake in Bankia Vida life insurer. It will also pay 247 million euros, for ending a contract to distribute non-life insurance.
The combined amount represents 110% of the value of the two businesses. But Mapfre said that it opened an arbitration process to demand Caixabank pays 120% of the value. Mapfre stated that the parts will submit to a process of arbitration an additional compensation for up to 52 million euros. Mapfre said that the deal would yield a 171-million-euro profit. Also, that it will use to improve efficiency in Spain and Italy. Caixabank expected no significant impact on its accounts in 2021 from the transaction. This adds that the 49% stake in the life insurance business contributed 29 million euros in the nine months of 2021. And that was under Caixabank‘s control. It said that its 4.3 billion acquisition of Bankia was aimed at boosting profitability and reducing costs.