The JV will be the exclusive insurance partner for both the existing and the future Dutch banking operations of ABN Amro
Aviva has announced that its Netherlands-based business, Delta Lloyd Group and ABN Amro Bank Netherlands are to continue their insurance joint venture, known as ABN Amro Insurance.
Following the takeover of ABN Amro by Fortis in May 2008, ABN Amro indicated that it would exercise its right under a change of control clause to buy back Delta Lloyd’s 51% stake in their joint venture, with the intention of transferring that holding to Fortis Insurance Netherlands. However, given the subsequent acquisition of ABN Amro by the Dutch state, Delta Lloyd, ABN Amro and the Dutch government have concluded that continuing the joint venture is a more sustainable option.
Under the terms of the arrangement, the original 30-year joint venture agreement between Delta Lloyd Group and ABN Amro Bank Netherlands which began in 2003 will run for the remaining 24 years. Both parties have agreed that the joint venture will be the exclusive insurance partner for both the existing and the future Dutch banking operations of ABN Amro.
In addition ABN Amro will bear the costs incurred by Delta Lloyd when ABN Amro initiated the process to acquire Delta Lloyd’s joint venture shares.
Andrew Moss, group CEO of Aviva, said: This is an excellent outcome. The continuation of a newly re-energised joint venture with a leading bank in the Netherlands will enhance Delta Lloyd’s position in bancassurance and will ensure that they can continue to provide products to customers through the full range of distribution channels.