Chinese financial group Anbang is to buy the Vivat life arm of Netherlands-based insurance-to-banking group SNS Reaal, which is now effectively owned by the Dutch state.
SNS Reaal is selling Vivat's equity for €150m. The Dutch state said separately that Anbang would inject between €770m and €1bn into Vivat in order to improve its solvency. Anbang will also assume about €552m of Vivat's debt.
SNS Reaal intends to working toward the creation of a viable standalone banking operation.
Meanwhile, the company said that it would not resume payments on €500m of subordinated bonds until the deal was closed .
SNS Reaal was nationalised in February 2013 after it became clear that it could not recover from the impact of the financial crisis of 2008/09.
Beijing-based Anbang, which hit the headlines earlier this month when it obtained regulatory approval for its purchase of the Waldorf Hotel in New York for $1.95bn, also bought Belgian insurer Fidea in October 2014. It has also agreed to buy a majority stake in Tong Yang Life, according to a report in Korea Economic Daily.