Dutch life insurance and pension company Aegon is to buy a 50% stake in Spanish business partner Caja de Ahorros y Monte de Piedad de Navarra's subsidiary Seguros Navarra, as the two companies expand their life insurance business tie-up.
The acquisition will take place in two tranches; initially Aegon will acquire a 15% stake with another 35% expected to be acquired in the first quarter of 2006. The 50% stake will cost Aegon E60 million plus a further sum in five years based on business performance.
Alongside its investment in Seguros Navarra, Aegon will also expand its bancassurance business association with savings bank Caja Navarra. Caja Navarra will provide exclusive access to its network of 266 branches to Seguros Navarra to sell life insurance and pension products, while Aegon will contribute its broad base insurance expertise.
As a result of the partnership, Seguros Navarra will significantly expand its life and savings product offering, completing its current recurring and single premium and savings products as well as its pension plans.
Aegon is proud to join with Caja Navarra in providing life and pensions solutions to their extensive customer base, said Donald Shepard, CEO and chairman of Aegon. We are confident that together we will build a leading position in the growing Spanish life and pensions market.