Both the firms entered into a 25-year agreement for marketing and distribution of life insurance and pension products

Barclays Bank (Barclays) and CNP Assurances SA (CNP) have decided to start a long-term life insurance joint venture in Spain, Portugal and Italy. Barclays has signed a 25-year agreement with CNP for the marketing and distribution of life insurance and pension products, through Barclay’s retail network in Spain, Portugal and Italy.

Barclays would sell a 50% stake in Barclays Viday Pensiones Compania de Seguros (BVP), Barclays Iberian life insurance and pension’s subsidiary, to CNP.

CNP would pay Barclays an initial upfront consideration of €140 million in cash on completion. This is subject to a post-completion adjustment by reference to BVP’s net assets, as at closing. An additional consideration of up to €450 million will be payable to Barclays in cash over a period of 12 years, depending upon the margins of the two shareholders.

Gilles Benoist, CEO of CNP Assurances, said: “CNP’s long-standing experience and expertise in life insurance, particularly in Southern Europe, combined with the growth capacity of Barclays in this region, will create long-term value for all parties.”