Aegon, a life insurance and pension company, has signed a life insurance, pension and health joint venture agreement with savings bank Caixa Terrassa.
As part of the joint venture agreement, Aegon will pay E190 million for a 50% stake in Caixa Terrassa Vida, Caixa Terrassa’s life insurance, pension and health unit.
Based on the performance of the joint venture, Aegon may pay an additional consideration to Caixa Terrassa. Under the joint venture agreement, Caixa Terrassa will exclusively distribute life insurance, pension and health products through its network of almost 300 bank branches. Aegon will fully integrate Caixa Terrassa Vida’s back office into its own operations.
Aegon’s joint venture agreement with Caixa Terrassa is expected to close during the fourth quarter of 2008 and is subject to approval by the Spanish and European regulatory authorities.
Alex Wynaendts, CEO of Aegon, said: We are very pleased with this partnership which is key in securing access to the Catalonian market, one of the wealthiest regions of Spain. Adding Caixa Terrassa Vida to our franchise fits very well with our strategy of strengthening our position in the Spanish life insurance market.