Aegon is set to expand its partnership with Banco Santander in Spain covering term life and selected lines of non- life insurance following Banco Santander’s acquisition of the Banco Popular franchise in 2017.
According to Alex Wynaendts, CEO of Aegon:
“I am delighted to announce an expansion of the existing relationship with Banco Santander, which will give us access to an additional client base of four million customers in Spain. From the very start of the partnership, Santander and Aegon have created a successful collaboration in Spain, generating healthy returns and remittances to the group”.
With an average yearly growth in gross written premiums of 12% over the period from 2014 to 2017, the partnership has been termed successful . Providing products under joint venture such as term life, household, accident and health insurance, the new joint venture is expected to lead to substantial growth in the upcoming years.
With an upfront consideration of EUR 215 million ($250.17 million) and additional amount of up to EUR 75 million ($87.23 million) to be paid after 5 years depending upon the performance, the transaction is expected to be funded from holding excess cash. The transaction is subject to due diligence, regulatory approval, and several other conditions and to the process of terminating the existing alliances of Banco Popular.
Headquartered in the Netherlands, Aegon is an international company, with businesses in more than 20 countries in the Americas, Europe and Asia. Founded in 1983, Aegon provides life insurance, pensions, and asset management services. Aegon employs around 28318 employees around the world.