The Dutch government says nationalized bank SNS Reaal has agreed to sell its insurance division, Reaal NV, to Chinese insurer Anbang Group Holdings Co. Ltd.
Finance Minister Jeroen Dijsselbloem says in a letter to Parliament the deal "offers clear perspective to Reaal, its employees and policy holders."
The government said it would spin off the insurance arm of SNS Reaal after it injected 2.2 billion euros to recapitalize the bank and insurer in 2013.
According to terms released Monday by Dijsselbloem, Anbang will pay 150 million euros ($171 million) for Reaal. The Chinese company also will inject up to 1 billion euros ($1.14 billion) to recapitalize the business and pay off 552 million euros ($630 million) in internal loans to SNS Bank.
Dutch and Chinese regulators must approve the deal.