MADRID/AMSTERDAM Dec 20 Spanish bank Santander
said it will book gross capital gains of 410 million
euros ($543.6 million) from its alliance with Dutch insurer
Aegon aimed at strengthening their bankassurance
business in Spain.
Under the terms of the deal Santander said on Thursday it
will create two new insurance companies, one for life and one
for general insurance, in which Aegon will take a 51 percent
stake for 220 million euros.
Santander, which will hold the remaining 49 percent stake,
will sign a 25-year contract to distribute Aegon's insurance
products via its branch networks.
Spanish banks, hit by the burst of a real estate bubble five
years ago that forced the country's government to ask Europe for
a 100 billion credit line for its lenders, are in the process of
selling off non-core assets to strengthen their balance sheets.
The deal with Aegon excludes savings, health and auto
insurance products, which will continue to be managed by
Aegon could pay more money to Santander after five years,
depending on the performance of the partnership, said Aegon,
which has been active in Spain for over 30 years through its
network of bancassurance joint ventures with regional banks.
The Dutch company said the transaction, which would be
funded from existing resources, was expected to close in the
first half of 2013, subject to regulatory approval