Under the terms of the deal, Allianz will acquire a stake of 50% plus one share in the bancassurance joint venture for an initial price of €277m followed by up to €100m in milestone payments
Allianz to form bancassurance joint venture in Spain with BBVA. (Credit: Allianz)
Allianz has signed a deal worth up to €377m with Spanish banking group Banco Bilbao Vizcaya Argentaria (BBVA) to form a bancassurance joint venture (JV) in Spain.
The deal signed by the parties in this regard includes a long-term exclusive distribution agreement for the sale of property-casualty insurance products via the banking network of BBVA in the country.
BBVA will have an exclusive partnership with Allianz to meet the needs of its customers in Spain for non-life and non-health insurance products.
As part of the deal, BBVA’s subsidiary BBVA Seguros will transfer its assets and liabilities associated with the non-life insurance business. The in-force business planned to be transferred to the new joint venture includes about €300m of gross premiums written as of 2019.
Under the terms of the deal, Allianz will acquire a stake of 50% plus one share in the bancassurance joint venture for an initial price of €277m. The German insurer will also pay a variable amount of up to €100m, which will be based on meeting of certain business and operational goals.
The bancassurance partnership is said to combine BBVA’s digitally-enhanced banking franchise with the insurance expertise and long-standing experience of Allianz in the Spanish market.
BBVA has close to 2,600 branches across Spain and has nearly 11 million retail customers. Through the alliance, its banking customers are expected to gain an easy access to Allianz’ insurance solutions through its branch network and digital platforms.
BBVA Spain head Peio Belausteguigoitia said: “BBVA holds a key head start in the non-life insurance business given the knowledge of its customers and clients and distribution capabilities through physical and digital channels. Allianz boasts a clear international leadership in innovation and development of insurance products.”
Allianz’ Spanish subsidiary Allianz Seguros is said to be among the top three property-casualty insurers in the country with non-life premium income of €2.4bn in 2019.
Allianz CEO comments on the bancassurance deal with BBVA
Allianz CEO Oliver Bäte said: “Our strategic focus is very similar and our collaboration in building one of the biggest bancassurance partnerships in property-casualty insurance, including a focus on digital solutions will lead to mutual success.
“This partnership will enhance BBVA’s offering by delivering a full range of attractive non-life insurance products to customers, leveraging on its leading position in the country, as well as on Allianz’ recognized brand and capabilities.”