CGU announced on the weekend a £200m bancassurance deal with Bancaja, the Spanish savings bank.
The acquisition will give CGU a 50 per cent stake in the Spanish bank's life insurance subsidiary Aseval, including management control.
The move further increase CGU's presence on the continent. The life office is involved in a merger with Norwich Union, pending Government approval.
Aseval is Spain' 13th largest player in the life assurance market and the ninth in the pension's market. Combined with the existing CGU and Norwich Union businesses, the group will rank ninth in the Spanish life market.
CGU chief executive Bob Scott says: “This is a further important step in our strategy of increasing our distribution power and growing life business in attractive markets.”