Allianz strikes €377m bancassurance deal with Spain's BBVA

Allianz has signed a strategic bancassurance joint venture (JV) deal with one of Spain's largest banks Banco Bilbao Vizcaya Argentaria (BBVA). The deal includes a long-term exclusive distribution agreement for the sale of property/casualty insurance products through BBVA’s banking network in Spain.

Allianz will acquire 50 percent plus 1 share in the JV for an initial price of €277 million and in addition pay a variable amount of up to €100 million related to achieving specific business and operational goals.

Under the agreement, BBVA will exclusively partner with Allianz in the country for non-life and non-health insurance products.

The inforce insurance business that BBVA Seguros will transfer to the new JV in 2019 had circa 300 million euros of gross premiums written.

The partnership aims to combine BBVA’s digitally-enhanced banking franchise with Allianz’ insurance expertise and experience in the Spanish market. BBVA is one of the largest banks in Spain with circa 2,600 branches, attracting circa 11 million retail customers. With non-life premium income of 2.4 billion euros in 2019, Allianz Seguros is ranked among the top three property/casualty insurers 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. “This partnership will enhance BBVA’s offering by delivering a full range of attractive non-life insurance products to customers, leveraging on its leading position in the country, as well as on Allianz’ recognized brand and capabilities. We continue to innovate and join forces in co-creating world-class digital products for our customers, and we are pleased that BBVA has chosen Allianz as the best solution provider for its customers.”

Iván de la Sota, chief transformation officer of Allianz SE, added: “We are very pleased to enter into a long-term bancassurance relationship with BBVA in Spain. This partnership strengthens our position in the market and demonstrates our strong commitment to continue growing in Spain, even more during these difficult times. Together with BBVA, we aim to develop new innovative insurance solutions that are simple and attractive for the customers.”

Carlos Torres Vila, chairman of BBVA, said: “We are confident that the strategic alliance with Allianz announced today will strengthen BBVA's strategy and it is fully aligned with our priority of improving the financial health of clients. Partnering with a top insurer like Allianz will bring a wider and more innovative insurance offering to BBVA’s clients in Spain.”