Banco Bilbao Vizcaya Argentaria SA Agreement between BBVA and Allianz (0436L)
28 Abril 2020 - 01:00AM
UK Regulatory
TIDMBVA
RNS Number : 0436L
Banco Bilbao Vizcaya Argentaria SA
27 April 2020
Banco Bilbao Vizcaya Argentaria, S.A. ("BBVA"), in accordance
with the provisions of Securities Market legislation, hereby
communicates the following:
INSIDE INFORMATION
Today BBVA reached an agreement with Allianz, Compañía de
Seguros y Reaseguros, S.A. ("Allianz") in order to create a
bancassurance partnership, for the purpose of developing the
non-life insurance business in Spain, excluding the health
insurance line (the "Transaction").
The Transaction will be implemented through the creation by BBVA
Seguros, S.A., de Seguros y Reaseguros ("BBVA Seguros") of a
newly-incorporated insurance company (the "Company"), to which the
assets and liabilities related to the non-life insurance business
owned by BBVA Seguros will be contributed.
The agreements to be signed at closing of the Transaction will
include, among others, a distribution agreement for a 15-year term
under which BBVA will distribute in Spain, on an exclusive basis,
the non-life insurance products of the Company (excluding the
health insurance line) on the terms and conditions established in
such agreement.
In addition, on the closing date of the Transaction, BBVA
Seguros will transfer 50 percent plus one share of the Company to
Allianz for an initial fixed price of approximately 277 million
euros, which will be adjusted based on the variation in the
Company's shareholders equity between signing and closing date. In
addition to the initial fixed price, Allianz shall pay to BBVA
Seguros, if applicable, a variable price of up to 100 million euros
related to achieving specific business goals and attaining certain
milestones included in the integration plan agreed by the
parties.
Excluding the variable part of the price, it is estimated that
the Transaction will generate a profit net of taxes amounting to
approximately 300 million euros, and that the positive impact on
the fully loaded CET1 capital ratio of BBVA Group will be
approximately 7 basis points.
The closing of the Transaction is subject to obtaining the
required regulatory authorizations.
Madrid, April 27, 2020
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END
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