On Tuesday 22 November 2005, Aegon N.V signed an agreement with Caja de Ahorros de Navarra to develop a joint partnership within the bancassurance segment. The agreement is subject to customary regulatory approval and is expected to be completed in January 2006.
This agreement is in line with Caja de Navarra’s strategy of strengthening its insurance and long-term asset gathering activities.
The transaction has been structured as a 50/50 partnership in which Caja de Navarra has agreed to dispose 50% of the company to Aegon in a two-step transaction (15% then an additional 35%).
The scope of the agreement includes a distribution contract between Caja de Ahorros de Navarra and the insurance company plus a Services Supply contract between Aegon AIE and the insurance company. Aegon has accepted to pay an upfront amount of EUR 60m for the 50% stake, which will be completed by other payments contingent upon the achievement of a pre-agreed business plan over the next 5 years.
BNP Paribas Corporate Finance acted as exclusive advisor to Caja de Ahorros de Navarra. It is important to point out that this transaction is the biggest deal in the insurance sector this year and the most relevant operation within the bancassurance sector after Aviva’s deals in 2000 and 2002.
