Mapfre signs €82m deal with Santander to expand insurance distribution with new company

Spanish insurer Mapfre has signed a deal to invest €82 million to create a company with Santander Spain to distribute automobile, self-employed and company insurance.

Under the deal, Mapfre owns 51.01 percent of the capital, while Santander Insurance holds the remaining 49.99 percent.

Santander will exclusively distribute the new company’s automobile, commercial multirisk, SME multirisk and third-party liability through its bank network in Spain until December 2037.

Jose Manuel Inchausti, CEO of Mapfre Spain, said the strategic agreement “boosts Mapfre’s commercial capacity in Spain”.

“The alliance with Santander significantly increases our commercial reach, bringing more than 4,000 additional points of sale into play, which will perfectly complement Mapfre’s already comprehensive agency network, comprising 3,000 offices and other current distribution channels,” he said.

Rami Aboukhair, CEO of Santander Bank Spain, said: “This great alliance, which brings together the capacities and potential of two leading groups, will allow us to offer our clients, both corporate and individual, the most innovative product solution, digital capabilities and the highest service quality levels.”

Pending approval from the relevant authorities, the new company, will begin work in the fourth quarter of 2019.

Last month (June 2019), German insurer Allianz sold its 60 percent stake in Spanish joint venture Allianz Popular to Banco Santander for €936.5 million. It also ended its exclusive non-life insurance distribution agreement with the Spanish bank.

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