BBVA has transferred half of its non-life insurance business (1.18 million insured policies) to Allianz for 274 million euros
BBVA has announced the birth of BBVA Allianz Seguros, the joint venture of bancaseguros agreed with Allianz in April, after the transfer from BBVA Seguros to Allianz of half plus one share of BBVA Seguros Generales for about 274 million euros.
After having obtained all the necessary authorizations, and within the framework of their agreement to create a ‘joint venture’ to promote the non-life insurance business in Spain Announced last April, BBVA Seguros has contributed nearly 1.18 million insured policies to the new joint venture, representing approximately 300 million euros in written premiums at the end of 2019.
Allianz has paid 274 million for its 50% stake plus one share and it could pay BBVA Seguros a variable price of up to 100 million euros depending on the achievement of certain business objectives and certain milestones foreseen in the integration plan agreed by the parties.
As BBVA has informed the National Securities Market Commission (CNMV), the operation, without taking into account the aforementioned variable price, will entail a positive result net of taxes estimated at around 300 million euros, as well as a positive impact on the fully loaded CET1 of the BBVA Group of approximately 7 basis points. These impacts will be reflected in the financial statements of the group at the close of fiscal year 2020.
The new company, which will be renamed BBVA Allianz Seguros, will exclusively serve the clients of the bank in Spain for non-life products, excluding health insurance, for the next 15 years.
The general director of bancassurance at Allianz Seguros, Miguel PÃ © rez Jaime, will be the director-general director of the new ‘joint venture’. They will accompany him in the management of the new company, Carles Alsina, as business director; Emilia Macarie, as financial director, and Ramón Lasurt, as operations director.
The CEO of BBVA Seguros and president of the new company, Eugenio Yurrita, has indicated that the main objective is to improve the financial health of its clients. “With the creation of this new company, we take another step forward, as we enrich the insurance value proposition. This new alliance, which is beginning today, will allow us to continue growing with a strategic partner, leader worldwide, as is Allianz “, he highlighted.
On his side, the CEO of Allianz Seguros and vice president of the joint venture, JosÃ © Luis FerrÃ ©, has highlighted that BBVA Allianz Seguros is “a strategic project” for Allianz Seguros, which will strengthen its presence in the market. “Together with BBVA, we want to develop new innovative insurance solutions that are simple and attractive to customers, in order to remain aligned with our purpose: to ensure the future of customers, also in the banking channel,” he pointed out.