German insurer Allianz and Spanish financial services firm Banco Popular have formed a insurance joint venture, which will manage assets worth around EUR11bn.
The joint venture, to be branded as Allianz Popular, would integrate the life Insurance, non-life insurance, pension and mutual funds businesses of both companies.
Allianz will own 60% of the new entity while Banco Popular will own the remaining 40%.
According to the Allianz, the new venture would have access to 6.3m clients and distribution would be on an exclusive basis for an initial term of 15 years.
Banco Popular chairman Angel Ron said that this new joint venture will position Banco Popular at the forefront of the long term savings industry in Spain.
Allianz Seguros CEO and chairman in Spain Vicente Tardio said that following the successful cooperation for more than 20 years with Banco Popular, the joint venture will strengthen the distribution of products in this core market in the future.
The transaction is subject to regulatory approvals.