Aegon and Santander complete expansion of partnership in Spain
July 30, 2020, 8:00 CEST
On July 3, 2018, Aegon and Banco Santander agreed to expand their life and non life insurance partnership, following Banco Santander’s acquisition of Banco Popular. Today, Aegon announces that this expansion has been completed.
Aegon's insurance joint ventures with Banco Santander in Spain completed the acquisition of the in force term life policies previously sold through Banco Popular branches as well as the right to write new term life and selected lines of non-life policies through the former Banco Popular branches now owned by Banco Santander.
The transaction was closed following satisfaction of all closing conditions, including the termination of existing alliances of Banco Popular. The total consideration for Aegon's 51% stake in the joint venture with Banco Santander consists of an upfront amount of EUR 187 million – somewhat lower than the EUR 215 million communicated in July 2018 mainly due to the results of the in-force portfolio which accrued to Santander till closing – plus the previously agreed contingent payment of up to EUR 75 million in 2024 which is subject to the performance of the partnership. The transaction will have a negative impact of 3 percentage points on the Group Solvency II ratio.