Switzerland-based insurer Zurich Financial Services Group has signed definitive agreements with Banco Santander to buy a majority interest in the bank's Latin America insurance operations.
The insurer says the agreement is materially unchanged from what was announced on 22 February of this year.
Earlier, Zurich signed a 25-year strategic distribution agreement with Banco Santander where it would acquire 51% of the bank’s insurance business in Latin America and Santander would keep the remaining 49%.
Zurich will pay $1.67bn for its 51% participation in the insurance operations including the respective distribution agreements.
The alliance with Santander provides Zurich with access to over 5,600 bank branches and an additional 36 million customers in the region.
The two parties expect to close the transaction before the end of this year, subject to the receipt of regulatory approvals.