The Swiss insurer will now acquire a stake in the Spanish firm’s life insurance, pension and general insurance operations.
With these acquisitions, Zurich becomes the fourth largest life and fourth largest general insurer in Spain.
Zurich’s CEO James J Schiro says: “We have always said we wanted to increase our market position in this important market. It is also consistent with our multi-distribution strategy, and reflects our disciplined approach to acquisitions.“
Zurich’s CEO of global life insurance Mario Greco says the move is a huge step forward.
He said: “This is another milestone in the implementation of our global life strategy, and reinforces our strength in bancassurance distribution. This acquisition and alliance strengthens our progress to this goal.”
Zurich will finance this transaction with internal resources. The transaction is subject to the approval of the relevant regulatory authorities and is expected to close by Q4 2008.