FILE PHOTO: The brand of insurer Allianz SE is seen on the corporate constructing in Puteaux on the monetary and enterprise district of La Protection close to Paris, outdoors Paris, France, Might 14, 2018. REUTERS/Charles Platiau
MUNICH/MADRID (Reuters) – German insurer Allianz (ALVG.DE) has struck a deal to spend money on the bancassurance enterprise of Spanish lender BBVA (BBVA.MC), the businesses stated on Monday, confirming an earlier report by Reuters.
The enterprise will give Allianz a platform to revive its Spanish distribution community for its property-casualty insurance coverage merchandise after a earlier settlement with Banco Standard got here to an finish following Standard’s sale to Santander in 2017.
Allianz will purchase 50% plus one share of the three way partnership for an preliminary 277 million euros ($299.94 million). It can pay as much as a further 100 million euros relying on the achievement of sure enterprise and operational objectives.
That’s a lot lower than the unique measurement of the deal, touted to be as much as 1 billion euros throughout early discussions, and fewer formidable in scope.
BBVA’s whole insurance coverage community supplies every part from life to well being, dwelling and automotive insurance coverage.
Excluding the variable a part of the transaction, the deal will generate web revenue of round 300 million euros for BBVA, it stated, in addition to add 0.07 proportion level to its fully-loaded frequent fairness tier 1 capital ratio.
Reporting by Alexander Hübner and Jesus Aguado; Writing by Arno Schuetze and Tom Sims; enhancing by Emma Pinedo and Chizu Nomiyama