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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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April 28, 2020 02:00 ET (06:00 GMT)

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