The German insurance giant Allianz SE (ALVG.DE) has signed an agreement to create a bancassurance partnership with financial services company Banco Bilbao Vizcaya Argentaria (BBVA.MC) on Monday.
The bancassurance joint venture will provide Allianz a venue to restore its long-term exclusive distribution agreement for the sale of property-casualty insurance products through BBVA’s banking network in Spain.
“Our strategic focus is very similar and our collaboration in building one of the biggest bancassurance partnerships in property-casualty insurance, including a focus on digital solutions will lead to mutual success,” said Oliver Bäte, Chief Executive Officer of Allianz SE.
Allianz will get a 50% plus one portion of the joint venture for an initial investment worth 277 Million Euros ($299.94 Million). Allianz is set to pay up to 100 Million Euros depending on what its businesses and operational objectives could achieve.
The deal is expected to generate a net profit worth 300 Million Euros and 0.07 basis points for BBVA’s Group fully-loaded CET1 capital ratio.
The BBVA’s insurance network caters everything from life to well-being, house and automobile insurance.