Advertisement

Santander and Aegon to form strategic alliance in Spain

Banco Santander has announced that it will form a strategic partnership with Aegon to strengthen its bancassurance in Spain.

Banco Santander has announced that it will form a strategic partnership with Aegon to strengthen its bancassurance in Spain.

Under the terms of the partnership, Santander will create two new insurance companies, for life and non-life insurance, which will be 51% owned by Aegon.

Santander and Aegon will share responsibility for managing them. Santander will keep a 49% stake and sign a 25-year contract to distribute their insurance products via its branch networks.

Advertisement - Article continues below

The deal excludes savings, health and auto insurance products, which will continue to be managed by Santander.

The bank will distribute joint insurance products via its branch networks in Spain.

Commenting on the agreement, Javier Marn, head of Santander's Global Private Banking, Asset Management and Insurance division, said: "This agreement will allow us to offer customers a wider and more innovative range of insurance products, co-managed by one of the world's leading insurers. It will accelerate our growth in the insurance business, thanks to the combination of the partners' strengths".

Alex Wynaendts, Chief Executive Officer of Aegon, said: "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."

The transaction, which is expected to close in the first half of 2013 subject to regulatory approval, will generate a pre-tax capital gain of €410m for Grupo Santander, based on the valuation of the entire business.

MF

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
What gold, bonds and tech stocks have in common
Stockmarkets

What gold, bonds and tech stocks have in common

"Risk off" or "safe haven" assets such as gold and government bonds have been doing well lately. But so have riskier tech stocks. That seems to defy c…
10 Jul 2020
House price crash: UK property prices are falling – so where next?
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020