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CNP Assurances says less than 5 million euro impact from Cyprus bank

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(Globalpost/GlobalPost)

PARIS (Reuters) - CNP Assurances, which has a 50.1 percent stake in a Cyprus subsidiary, said on Tuesday that the restructuring of the island's Laiki Bank would have an impact of less than 5 million euros(4.24 million pounds) on the French insurer's net income.

CNP Assurances' shares fell sharply last week amid worries over its CNP Laiki Insurance Holdings (CNP LIH) and exposure to the Cyprus financial crisis.

The French company has a 50.1 percent stake in CNP Laiki Insurance Holdings while the remaining 49.9 percent is held by Laiki Bank, which has been put into liquidation under agreements between the Eurogroup and the Cypriot government.

"Given the terms and conditions of the implementation of the bank restructuring...the impact on the value of deposits and other banking assets held by CNP LIH is presently estimated at less than 10 million euros (for an impact on the net income of CNP Assurances of less than 5 million)," the statement said.

CNP LIH had a value of 170.9 million euros at end-2012 in the consolidated accounts of CNP Assurances of which 79.4 million was goodwill.

In 2012, the contribution of CNP LIH to the net income of CNP Assurances was 11.5 million euros( 9.75 million pounds) out of total net income of 951 million euros.

(Reporting by Dominique Vidalon; Editing by Grant McCool)

http://www.globalpost.com/dispatch/news/thomson-reuters/130402/cyprus-have-four-percentgdp-primary-surplus-2017-onwards-mou