Global insurer Allianz has announced plans with Banco Santander to sell its 60% stake in its joint Spanish bancassurance venture, Allianz Popular SL.
Banco Santander has agreed to pay €936.5 million for the acquisition of Allianz’s holding and for the termination of the exclusive non-life distribution agreement with Allianz’s operating entity in Spain.
Allianz originally entered into an exclusive long-term bancassurance alliance with Banco Popylar in 2011.
The alliance covered life insurance, pensions, and asset management through the joint venture of Allianz Popular SL, as well as the distribution of non-life insurance products in Spain.
In 2017, Banco Popular was acquired by Banco Santander, and the two banks were merged in 2018.
Following the resolution of the Allianz Popular bancassurance alliance, Allianz will continue to operate in both non-life and life insurance markets through Allianz Compañia de Seguros y Reaseguros, S.A. and Fénix Directo Compañia de Seguros y Reaseguros, S.A.
Allianz Popular SL had gross written premiums of 0.3 billion euros and assets under management of 12.5 billion euros in 2018.
The transaction currently remains subject to regulatory approvals and is expected to be completed during the first quarter of 2020.