The partnership gives Aegon access for the first time to Catalonia, one of Spain’s wealthiest regions with a population of more than seven million people.
Under the agreement, Caixa Terrassa will distribute Aegon life insurance, pension and health products through its network of almost 300 bank branches.
Aegon CEO Alex Wynaendts said the partnership with Caixa Terrassa “fits very well with our strategy of strengthening our position in the Spanish life insurance market”.
Aegon now has distribution agreements in place with five of Spain’s regional savings banks – a potential market of more than 3.9 million people. With this latest agreement, Aegon will become Spain’s sixth largest life insurer. Some 70% of life insurance in Spain is sold through the country’s banks.
The move is also part of Aegon’s broader strategy to expand its international presence and target more of its financial resources toward businesses with attractive growth prospects.
Based in Terrassa, just north of Barcelona, Caixa Terrassa is one of Catalonia’s largest savings banks, serving approximately 500,000 customers.
Under the terms of the joint venture, Aegon will pay EUR 190 million for a 50% stake in Caixa Terrassa Vida, the Spanish bank’s life insurance, pensions and health unit. An additional consideration will be paid once all jointly-agreed business objectives are met. Aegon will also integrate Caixa Terrassa Vida’s back office into its own operations.
The joint venture is subject to approval by the Spanish and European regulatory authorities, but is expected to close during the fourth quarter this year.
