Aegon has entered into an exclusive 25 year strategic partnership with Santander which will see the companies create two new Spanish insurance businesses.
Under the terms of the joint venture, Aegon will pay €220m (£179m) to acquire a 51 per cent stake in two new insurance companies, both of which will be created by Santander.
One of the companies will provide life insurance and the other will specialise in general insurance.
Aegon will provide the back office systems for the two new businesses. Santander will then distribute the protection and general insurance products through its 4,600 Spanish branches.
Depending on the performance of the partnership, Aegon could pay more after five years. The level of potential additional payment has not been disclosed.
Aegon chief executive Alex Wynaendts says: “Aegon has a firm commitment to Spain and a clear track record of providing quality products and services through the bank channel.
“With Santander we look forward to reaching and serving an even greater number of potential customers seeking long-term financial security in these uncertain times.”