The German financial services firm, Allianz, has sold its shares in a joint venture with Banco Santander to the Spanish bank.
Banco Santander will pay €936.5mn (US$1.06bn) for the 60% stake in Allianz Popular, ending the exclusive non-distribution agreement.
This will provide Banco Santander with exclusive distribution rights of certain non-life insurance products.
“Allianz and Banco Popular entered into an exclusive long-term bancassurance alliance in 2011,” stated a press release published by Allianz.
“It covered life insurance, pensions, and asset management through a joint venture Allianz Popular SL, as well as the distribution of non-life insurance products in Spain.”
“Banco Santander acquired Banco Popular in 2017 and the two banks were subsequently merged in 2018.”
Allianz Popular accounted for around 10% Allianz’s overall gross written premiums in the country.
With key products including life insurance, the venture accounted for around 30% the firm’s life insurance gross written premiums in Spain.
The transaction is subject to regulatory approvals and is expected to be completed in the first quarter of 2020.