Dexia sells its FLEXIA activity to the Winterthur Group Belgium.
This decision follows the announcement by Dexia on 18 January 2006 that it was studying various possibilities that guaranteed the development of the FLEXIA activity outside the Dexia Group, as it was no longer in line with the Group's strategy for development of its insurance activities on the Belgian market, which is to concentrate the distribution of insurance products within the network of Dexia Bank Belgium, its exclusive DVV consultants and the direct insurer CoronaDirect.
Within Dexia Insurance Belgium, FLEXIA markets IARD (nonlife) insurance products through insurance brokers. As at 31 December 2005, written premiums amounted to EUR 17 million.
The agreement relates to the takeover by the Winterthur Group Belgium of the insurance portfolio and all the staff members involved in the management of the FLEXIA activity.
As a consequence of the sale of Flexia, Dexia will be recording a gain of around EUR 15 million before tax in its consolidated accounts for the third quarter 2006.
The transaction is subject to approval being obtained from the relevant supervisory authorities.