Allianz and Banco Popular strengthen their strategic partnership

Allianz SE and Banco Popular form a joint venture to strengthen the existing partnership and to unite all existing joint ventures under one roof. With the company called Allianz Popular the two partners also expand their cooperation to asset management. Both companies will contribute their interests in the various subsidiaries that currently distribute through the network of Banco Popular life insurance (Eurovida S.A,. Compañia de Seguros y Reaseguros) pension plans (Europensiones SA EGFP) and investment funds (Popular Gestión SGIIC SA). The new platform will manage assets worth around 11 billion euros (as of end 2010), and will allow Banco Popular to become the partner of one of the largest insurance companies and asset managers in the world.

Allianz and Banco Popular will intensify cooperation in the field of insurance, pensions and asset management in Spain. Distribution will be on an exclusive basis for an initial term of 15 years. As a result the new company will receive access to a broad clientele of 6.3 million customers.

Allianz will own 60 percent of Allianz Popular with the remainder being held by the Spanish partner. The total value of the businesses involved is 1,058 million euros not including the potential value upside from future cash earn-out payments.

Commenting on this deal, Angel Ron, Chairman of Banco Popular said: "It has been a privilege being associated with Allianz and this is a new step forward. This new joint venture will position Banco Popular at the forefront of the long term savings industry in Spain."

"Following our successful cooperation for more than 20 years with Banco Popular, the joint venture will strengthen the distribution of our products in this core market in the future. Therefore Allianz will consolidate its position as one of the leading insurance companies in Spain", said Vicente Tardio, Chairman and CEO of Allianz Seguros in Spain. "Furthermore the Allianz Popular customers benefit in multiple ways: by the professional banking products and the wide distribution network of Banco Popular as well as by our experience in life insurance, pension plans, asset management, property and casualty insurance."

The transaction is subject to regulatory approvals.

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