Barclays share price: Disposals continue with Irish insurance unit

on Nov 8, 2016
Updated: Oct 21, 2019

Barclays (LON:BARC) has offloaded its Irish insurance business, the blue-chip bank has said. The move is part of the lender’s strategy to trim non-core assets as it looks to focus on its business in the UK and in the US.

Barclays’ share price has fallen deep into the red in today’s session, having lost 1.08 percent to 183.20p as of 14:09 GMT. The stock is underperforming the broader London market, with the benchmark FTSE 100 index having inched into positive territory and currently standing 0.06 percent higher at 6,810.68 points. The bank’s shares have lost more than a fifth of their value over the past year, and are down by some 16 percent in the year-to-date.

Barclays announced in a statement today that it had agreed to sell its Barclays Insurance (Dublin) Designated Activity Company and Barclays Assurance (Dublin) Designated Activity Company to Monument Re, for an undisclosed amount. The two businesses provide underwriting services for Payment Protection Insurance (PPI) and Income Protection policies, which the FTSE 100 group ceased to sell between 2010 and 2012. The bank, however, will retain any PPI-related risks associated with the portfolio.

“This sale marks another step forward for Barclays Non-Core as we continue to manage down costs and risk-weighted assets, and simplify the activities of the Group more broadly,” Harry Harrison, Head of Barclays Non-Core, commented in the statement.
The sale comes after the FTSE 100 group, which is aiming to turn into a transatlantic bank under chief executive Jes Staley, completed the sale and transfer of its Spanish life risk insurance book to Vidacaixa, S.A.U. de Seguros y Reaseguros, earlier this month, without disclosing the financial terms of the deal. The company is also currently looking to trim its stake in Barclays Africa to below 20 percent.
As of 14:56 GMT, Tuesday, 08 November, Barclays share price is 183.05p.

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