Zurich Financial Services Group has signed agreements to acquire 50% of Caixa d'Estalvis de Sabadell's life and general insurance companies, CaixaSabadell Vida de Seguros y Reaseguros and CaixaSabadell Companyia d'Assegurances Generals, in Spain.
The purchase price for the companies amounts to approximately $360 million initially plus an earn-out component of up to approximately $150 million depending on the future performance of CaixaSabadell Vida de Seguros y Reaseguros (CSV) and CaixaSabadell Companyia d’Assegurances Generals (CSG).
As part of the agreements, CSV and CSG will enter into banc-assurance agreements with Caixa d’Estalvis de Sabadell (Caixa Sabadell) group to sell life insurance, pension and general insurance products through Caixa Sabadell’s branch network on an exclusive basis.
Subject to the approval of the relevant regulatory authorities, the transaction is expected to close by the end of third quarter of 2008.
Mario Greco, CEO of global life insurance at Zurich, said: The transaction represents a growth opportunity for us to expand in one of our key growth areas. It further enables us to combine the strong distribution capacity of Caixa Sabadell with Zurich’s considerable proposition strengths and efficient pan-European operating platform.