Aegon has reached an agreement to exit its life, health and pension joint venture with Unnim Banc and sell its 50% stake to Unnim for a total consideration of EUR 353 million.
The sale is expected to result in a book gain of approximately EUR 105 million before tax, and to generate an average annual return of 12% on investment.
It is anticipated that the transaction will close during the second quarter of 2013. Aegon's share in underlying earnings before tax of the joint venture totaled EUR 20 million in 2012.
This anticipated divestment by Aegon is a consequence of the consolidation underway within the Spanish banking sector. Aegon maintains a long-term commitment to Spain and has recently reinforced its market position with an exclusive strategic partnership with Banco Santander to distribute life and general insurance products through its extensive network of 4,600 bank branches. The long-term alliance provides access to a potential client base of 12 million individuals across the country.
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.