CAIRO: Egypt’s Commercial International Bank (CIB and Legal and General will divest their stakes in Commercial International Life Insurance Company (CIL) to AXA for a deal 763 million EGP ($97.40 million,) CBI announced Monday.
CIL was established in 1998 and it is jointly owned by Legal and General and CIB with 55 percent and 45 percent stakes respectively. CIL has become a key player in the Egyptian life insurance industry.
AXA is considered one of the leading global insurance players with a strong presence in 59 countries.
“Such a decision comes in line with CIB’s open architectural strategy and in continuation of the Bank’s previously announced plan of gradually offloading all of its non-core banking activities,” CIB said in a Monday statement.
The transaction is to be completed upon receiving regulatory approvals, and it is expected to take place by the end of 2015.
The Egyptian Exchange’s bellwether, CIB- Egypt, reported a 38 percent rise first-quarter net profits year-on-year, totaling 1.1 billion EGP.
In 2014, the CIB posted net profits of 3.7 billion EGP, marking a 23.3 percent growth, compared to 3 billion EGP in 2013.