Banco BPM and Cattolica Assicurazioni, new agreement on Exit rights and commercial partnership

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Banco BPM and Cattolica Assicurazioni announced that they have reached an agreement on the conditions and procedures for the amendment and continuation of the bancassurance partnership and related exit rights were defined, combining their respective interests and taking the changed economic environment into account.

The agreement provides for protection mechanisms in favor of both parties tied to the call option exercise price (cap and floor of own funds as calculated on the reference date) and price adjustments due to retained profits, distribution of reserves / extraordinary dividends or any capital increases or capital contributions to the joint ventures.

Moreover, Cattolica has been granted improvement adjustments in the servicing contracts to the joint ventures and greater safeguards as regards the product mix. In the coming weeks, the understandings reached by the parties in the agreement will be reflected in a revision of the various contracts currently in force that govern the partnership.

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