Aegon and the Spanish savings bank Caja de Badajoz have reached an agreement to establish a 50-50 life insurance joint venture to sell life insurance, accident and pension products through the branch network of Caja de Badajoz.
Caja de Badajoz will provide the joint venture exclusive access to its network of 200 branches. Aegon will contribute its insurance expertise. In addition, the joint venture will make use of the back office capabilities of Aegon's existing platform in Spain.
At the end of the fifth year of the joint venture, Aegon will pay Caja de Badajoz an amount based on 50 percent of the appraisal value of the joint venture, which will be determined on the basis of achieved performance and according to a pre-agreed formula.
The transaction is in line with Aegon's strategy to further strengthen its bancassurance distribution capabilities in the fast growing Spanish life insurance and pension markets. The joint venture with Caja de Badajoz will complement the successful joint venture with Caja de Ahorros del Mediterráneo (CAM). The strategic partnership with Caja de Badajoz will provide Aegon a stronger position in the Spanish market.
The transaction is expected to close in the fourth quarter of 2005 and is subject to approval from the Spanish regulatory authorities.
About Caja de Badajoz
The savings bank Caja de Badajoz, established in 1889, has a network of 200 branches, which are concentrated in the Extremadura region. Caja de Badajoz, which is headquartered in Badajoz, offers a wide range of retail products to its clients.
At the end of 2004, Caja de Badajoz employed 857 people. Its total assets amounted to EUR 2.8 billion. Net earnings of the group were EUR 24 million in 2004. For more information, visit the company’s website at www.cajabadajoz.es.
Caja de Badajoz, Servicio de Atención al Cliente
Telephone: +34 924 21 40 92
E-mail: buzon@cajabadajoz.es
