Aegon and Santander to expand successful partnership in Spain
Business Wire 3-Jul-2018 2:00 AM
Aegon today announces that it has signed an agreement to expand its
successful partnership with Banco Santander in Spain. The expansion
covers term life and selected lines of non-life insurance following
Banco Santander's acquisition of the Banco Popular franchise in 2017.
"I am delighted to announce an expansion of the existing relationship
with Banco Santander, which will give us access to an additional client
base of four million customers in Spain", said Alex Wynaendts, CEO of
Aegon. "From the very start of the partnership, Santander and Aegon have
created a successful collaboration in Spain, generating healthy returns
and remittances to the group".
The joint venture with Banco Santander in Spain has been commercially
successful, with an average yearly growth in gross written premiums of
12% over the period 2014-2017. The new agreement with Banco Santander is
expected to lead to substantial growth going forward. Products provided
by the joint venture include term life, household, accident and health
insurance.
Aegon agreed to an upfront consideration of EUR 215 million and an
additional amount of up to EUR 75 million to be paid after 5 years,
depending on the performance of the partnership. The consideration will
be funded from holding excess cash. The final terms (including closing
and date of payment) of the transaction are subject to due diligence,
regulatory approval, several other conditions and to the process of
terminating the existing alliances of Banco Popular.
About Aegon
Aegon's roots go back more than 170 years – to the first half of the
nineteenth century. Since then, Aegon has grown into an international
company, with businesses in more than 20 countries in the Americas,
Europe and Asia. Today, Aegon is one of the world's leading financial
services organizations, providing life insurance, pensions and asset
management. Aegon's purpose is to help people achieve a lifetime of
financial security. More information on aegon.com/about.
Disclaimer
Forward-looking statements
The statements contained in this document that are not historical facts
are forward-looking statements as defined in the US Private Securities
Litigation Reform Act of 1995. The following are words that identify
such forward-looking statements: aim, believe, estimate, target, intend,
may, expect, anticipate, predict, project, counting on, plan, continue,
want, forecast, goal, should, would, could, is confident, will, and
similar expressions as they relate to Aegon. These statements are not
guarantees of future performance and involve risks, uncertainties and
assumptions that are difficult to predict. Aegon undertakes no
obligation to publicly update or revise any forward-looking statements.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which merely reflect company expectations at
the time of writing. Actual results may differ materially from
expectations conveyed in forward-looking statements due to changes
caused by various risks and uncertainties. Such risks and uncertainties
include but are not limited to the following:
-
Changes in general economic conditions, particularly in the United
States, the Netherlands and the United Kingdom;
-
Changes in the performance of financial markets, including emerging
markets, such as with regard to:
- The frequency and severity of defaults by issuers in Aegon's fixed
income investment portfolios;
- The effects of corporate bankruptcies and/or accounting restatements
on the financial markets and the resulting decline in the value of
equity and debt securities Aegon holds; and
- The effects of declining creditworthiness of certain public sector
securities and the resulting decline in the value of government exposure
that Aegon holds;
-
Changes in the performance of Aegon's investment portfolio and decline
in ratings of Aegon's counterparties;
-
Consequences of an actual or potential break-up of the European
monetary union in whole or in part;
-
Consequences of the anticipated exit of the United Kingdom from the
European Union and potential consequences of other European Union
countries leaving the European Union;
-
The frequency and severity of insured loss events;
-
Changes affecting longevity, mortality, morbidity, persistence and
other factors that may impact the profitability of Aegon's insurance
products;
-
Reinsurers to whom Aegon has ceded significant underwriting risks may
fail to meet their obligations;
-
Changes affecting interest rate levels and continuing low or rapidly
changing interest rate levels;
-
Changes affecting currency exchange rates, in particular the EUR/USD
and EUR/GBP exchange rates;
-
Changes in the availability of, and costs associated with, liquidity
sources such as bank and capital markets funding, as well as
conditions in the credit markets in general such as changes in
borrower and counterparty creditworthiness;
-
Increasing levels of competition in the United States, the
Netherlands, the United Kingdom and emerging markets;
-
Changes in laws and regulations, particularly those affecting Aegon's
operations' ability to hire and retain key personnel, taxation of
Aegon companies, the products Aegon sells, and the attractiveness of
certain products to its consumers;
-
Regulatory changes relating to the pensions, investment, and insurance
industries in the jurisdictions in which Aegon operates;
-
Standard setting initiatives of supranational standard setting bodies
such as the Financial Stability Board and the International
Association of Insurance Supervisors or changes to such standards that
may have an impact on regional (such as EU), national or US federal or
state level financial regulation or the application thereof to Aegon,
including the designation of Aegon by the Financial Stability Board as
a Global Systemically Important Insurer (G-SII);
-
Changes in customer behavior and public opinion in general related to,
among other things, the type of products Aegon sells, including legal,
regulatory or commercial necessity to meet changing customer
expectations;
-
Acts of God, acts of terrorism, acts of war and pandemics;
-
Changes in the policies of central banks and/or governments;
-
Lowering of one or more of Aegon's debt ratings issued by recognized
rating organizations and the adverse impact such action may have on
Aegon's ability to raise capital and on its liquidity and financial
condition;
-
Lowering of one or more of insurer financial strength ratings of
Aegon's insurance subsidiaries and the adverse impact such action may
have on the premium writings, policy retention, profitability and
liquidity of its insurance subsidiaries;
-
The effect of the European Union's Solvency II requirements and other
regulations in other jurisdictions affecting the capital Aegon is
required to maintain;
-
Litigation or regulatory action that could require Aegon to pay
significant damages or change the way Aegon does business or both;
-
As Aegon's operations support complex transactions and are highly
dependent on the proper functioning of information technology,
operational risks such as system disruptions or failures, security or
data privacy breaches, cyberattacks, human error, failure to safeguard
personally identifiable information, changes in operational practices
or inadequate controls including with respect to third parties with
which we do business may disrupt Aegon's business, damage its
reputation and adversely affect its results of operations, financial
condition and cash flows;
-
Customer responsiveness to both new products and distribution channels;
-
Competitive, legal, regulatory, or tax changes that affect
profitability, the distribution cost of or demand for Aegon's products;
-
Changes in accounting regulations and policies or a change by Aegon in
applying such regulations and policies, voluntarily or otherwise,
which may affect Aegon's reported results, shareholders' equity or
regulatory capital adequacy levels;
-
Aegon's projected results are highly sensitive to complex mathematical
models of financial markets, mortality, longevity, and other dynamic
systems subject to shocks and unpredictable volatility. Should
assumptions to these models later prove incorrect, or should errors in
those models escape the controls in place to detect them, future
performance will vary from projected results;
-
The impact of acquisitions and divestitures, restructurings, product
withdrawals and other unusual items, including Aegon's ability to
integrate acquisitions and to obtain the anticipated results and
synergies from acquisitions;
-
Catastrophic events, either manmade or by nature, could result in
material losses and significantly interrupt Aegon's business; and
-
Aegon's failure to achieve anticipated levels of earnings or
operational efficiencies as well as other cost saving and excess cash
and leverage ratio management initiatives.
This press release contains information that qualifies, or may qualify,
as inside information within the meaning of Article 7(1) of the EU
Market Abuse Regulation (596/2014).Further details of potential risks
and uncertainties affecting Aegon are described in its filings with the
Netherlands Authority for the Financial Markets and the US Securities
and Exchange Commission, including the Annual Report. These
forward-looking statements speak only as of the date of this document.
Except as required by any applicable law or regulation, Aegon expressly
disclaims any obligation or undertaking to release publicly any updates
or revisions to any forward-looking statements contained herein to
reflect any change in Aegon's expectations with regard thereto or any
change in events, conditions or circumstances on which any such
statement is based.
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