Groupama UK has confirmed that it has agreed to sell its Minster Insurance Services subsidiaries for an undisclosed sum to the Bear Stearns Companies Inc. Contracts have been exchanged and are subject to regulatory approval and due diligence. The sale agreement is expected to be completed by December 31st 2006.

Under the agreement, Bear Stearns’ subsidiary BSG Insurance Holdings will purchase the share capital of Minster Insurance Company and Minster Management Services, the specialist UK group subsidiaries that form Minster Insurance Services and manage the run-off of Groupama’s UK business portfolio. Caspar Gilroy, a private investor with a minority stake in BSG Insurance Holdings, has been named chairman of BSG Insurance Holdings.

“This is an important transaction because it establishes Bear Stearns’ involvement in the UK run-off insurance sector,” said Alan Mintz, a senior managing director and co-head of the special situations group at Bear Stearns. “This purchase will also assist Groupama to refocus its energies on growing its existing lines of business.”

Pierre Lefevre, chairman and CEO at Groupama UK, commented, “We are very pleased to have reached agreement with Bear Stearns. This is an excellent deal for Groupama because it delivers finality for the group in respect of its London Market run-off business together with a valuable return to shareholders.”