Netherlands based insurer Aegon has signed a 25-year strategic partnership with Spain’s Banco Santanderto, to distribute both protection and general insurance products in the country.

Under terms of the alliance, the lender will offer insurance products through its network of more than 4,600 bank branches including Banesto, Banif and Openbank, concentrating on a potential client base of 12 million customers.

In order to boost the collaboration, the Dutch insurer has decided to purchase 51% stake in both a life insurance company as well as in a non-life insurance company for €220m.

It is expected that the underwriter will pay extra amount after five years, based on the performance of the partnership.

The insurer has also decided to offer back-office services to the joint venture companies.

Pending regulatory approval and satisfying customary closing conditions, the transaction is expected to complete during the first half of 2013.

Aegon has been operating through its network of bancassurance joint ventures with regional savings banks, for more than 30 years.

Headquartered in Hague, Aegon trades in more than 20 markets in the Americas, Europe and Asia and serves 47 million customers, with the help of 25,000 staff across the world.