Allianz, the german insurer, has agreed to sell 60 percent of its stake in the joint venture, ‘allianz popular sl’ to banco santander for the agreed €936.5mn. It will also terminate its exclusive non-life insurance distribution agreement with the spanish bank.

Banco Popular and Allianz entered into the exclusive long-term bancassurance alliance back in 2011. This covered life insurance, asset management and pensions through a joint venture, Allianz Popular SL, as well as distributing non-life insurance products in Spain. Banco Santander acquired Banco Popular in 2017 and the two banks were subsequently merged in 2018.

Allianz will continue to operate in both non-life and life insurance markets through Allianz Compañia de Seguros y Reaseguros, SA and Fénix Directo Compañia de Seguros y Reaseguros, SA, generating gross written premiums of €3.3bn in 2018.

Allianz Popular SL had gross written premiums of €0.3bn and assets under management of €12.5 bn in 2018.

Subject to regulatory approvals, this transaction is expected to be completed in the first quarter of 2020.