7:33 AM, Jun 24, 2019 — Spanish lender Banco Santander (SAN) has agreed to pay 936.5 million euros ($1.06 billion) to acquire the 60% stake held by Allianz (ALV.DE, ALV.GR, AZSEY), Germany’s largest insurance group, in the joint venture Allianz Popular and for termination of an exclusive non-life insurance distribution agreement.
The agreement is subject to regulatory approvals and expected to be completed in the first quarter, according to a statement.
Munich-based Allianz and Banco Popular, a Santander subsidiary, signed an exclusive long-term bancassurance alliance in 2011. It covered life insurance, pensions and asset management, as well as the distribution of non-life insurance products in Spain.
Following the resolution, Allianz said it would continue to operate in both non-life and life insurance markets, and had in 2018 generated gross written premiums of 3.3 billion euros.
In May, Allianz announced its first-quarter results that showed total revenue grew 9.1% 40.3 billion euros and operating profit increased by 7.5% to 3.0 billion euros, setting the stage for the company to meet its 2019 full-year targets.
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