Aegon has entered into an exclusive 25-year strategic partnership with Banco Santander, Spain's largest financial group, to distribute both protection and general insurance products through the group's extensive network of over 4,600 bank branches (including Banesto, Banif and Openbank), focused on a potential client base of twelve million customers.
Under the terms of the agreement, Aegon will acquire a 51% stake in both a life insurance company as well as in a non-life insurance company for a consideration of EUR 220 million. Depending on the performance of the partnership, Aegon may pay an additional amount after five years. Furthermore, Aegon Spain will provide the back-office services to the joint venture companies.
The transaction is expected to close in the first half of 2013 subject to regulatory approval and will be financed from existing resources.
Aegon has been active in Spain for over thirty years and has established a reputation as a preferred provider of protection products through its network of bancassurance joint ventures with regional savings banks, or cajas. With this newest agreement, Aegon will consolidate its leadership position in this market in Spain.
"We are delighted with the opportunity to partner with Santander" said Aegon CEO Alex Wynaendts. "Aegon has a firm commitment to Spain and a clear track record of providing quality products and services through the bank channel. With Santander we look forward to reaching and serving an even greater number of potential customers seeking long-term financial security in these uncertain times."