In 2018, Aegon and Banco Santander agreed to expand their life and non‑life insurance partnership, following Banco Santander’s acquisition of Banco Popular.
After two years, Aegon has announced that this expansion has been completed.
Aegon’s joint ventures with 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 Santander.
The transaction was finalised after a following of satisfaction of closing conditions, which included 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 which is lower than the EUR 215 million communicated in July 2018.
This is mainly due to the results of the in-force portfolio which accrued to Santander till closing.
It’s also due to 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.
