NU Online News Service, Jan. 28, 2004, 5:34 p.m. EST – A large savings bank has agreed to help AEGON N.V., The Hague, Netherlands, sell life insurance and pension products in Spain.[@@]
Caja de Ahorros del Mediterraneo, Alicante, Spain, has agreed to work with AEGON to form a joint venture that will sell AEGON insurance products through Caja’s 851 branch offices.
If regulators approve the deal, Caja will contribute an insurance subsidiary to the venture and own a 50.01% stake. The insurance subsidiary, Mediterraneo Vida, generated the equivalent of about $650 million in life premiums in 2002.
AEGON will invest the equivalent of about $500 million in cash and financial assets in the venture and get a 49.99% stake.
Caja and AEGON plan to share management of the operations of the joint venture, but Caja will name the chief executive.