UPDATE 1-Aegon, Caixa Terrasse in insurance joint venture

(Adds detail, CEO comment)

AMSTERDAM, Aug 29 (Reuters) - Dutch insurer Aegon (AEGN.AS) said on Friday it was buying 50 percent of the insurance business of Spain's Caixa Terrassa (S0485.MC) for 190 million euros ($281 million) as it seeks new markets to fuel growth.

The Caixa Terrassa Vida joint venture, focused on life insurance, pension and health insurance services, will make Aegon the sixth-largest life insurer in Spain, the company said in a statement.

"This is an attractive proposition in a rich area," Aegon Chief Executive Alex Wynaendts told Reuters, adding that the deal would expand the range of products for existing customers.

Based on performance, Aegon said it may pay an additional consideration to Caixa Terrassa for the joint venture.

Aegon, which paid for the deal in cash, said the transaction would be "marginally accretive" to earnings.

Catalonian financial group Caixa Terrassa has about 500,000 customers in the region, and its life insurance, pension and health unit pulled in nearly 215 million euros in premiums, Aegon said.

The plan is for Caixa Terrassa to exclusively distribute life insurance, pension and health products through its network of almost 300 bank branches. (Reporting by Reed Stevenson, editing by Will Waterman)