6th Jun 2007 12:45
Aviva PLC06 June 2007 News release 6 June 2007 AVIVA ANNOUNCES NEW BANCASSURANCE JOINT VENTURE IN SPAIN WITH CAJAMURCIA Aviva plc ("Aviva"), the international savings, investments and insurance group,announces that it has entered into a long term bancassurance partnership withSpanish savings bank, Caja de Ahorros de Murcia ("Cajamurcia"). This newpartnership will enhance Aviva's leadership position in the Spanish life marketwhere it has ranked in the top three in terms of gross written premiums for thelast five years and leverages Aviva's extensive bancassurance expertise. Cajamurcia will provide exclusive access to its network of 413 branches toCajamurcia Vida y Pensiones S.A. ("Cajamurcia Vida"), the newly created lifeinsurance company jointly owned by Aviva and Cajamurcia, to sell life insuranceand pension products. Aviva will have management control over Cajamurcia Vidaand will consolidate its business at a group level. The consideration will be Eur 112.5m in cash. Further consideration may bepayable up to a maximum of an additional Eur 275m dependent on the performanceof the partnership. The Cajamurcia network and customer base will bring Aviva's total bancassurancenetwork to more than 4,600 branches, providing access to more than 10 millionpotential customers, thus strengthening its position as the second largestbanking distribution network in Spain. The bancassurance channel accounted forover 72% of 2006 new business premiums in the Spanish life market. Cajamurcia is the leading financial institution in Murcia where it has a 33%market share in deposits. The partnership provides excellent geographic fit andstrengthens Aviva's position in Levante, one of the fastest growing areas ofSpain. Cajamurcia has expansion plans to increase its branch network to up to500 branches over the next three years and this will complement the growthexpected from Aviva's other bancassurance partners. Tidjane Thiam, group executive director, Aviva Europe, said: "Our partnershipwith Cajamurcia will further strengthen Aviva's position in Spanishbancassurance. Aviva's expertise, both internationally and in Spain, combinedwith Cajamurcia's distribution capabilities present an excellent opportunity torealise value for all stakeholders. "Our bancassurance business continues to go from strength to strength and nowaccounts for 30%(1) of Aviva's worldwide life and pension sales. As a recognisedleader in this field, we've become the partner of choice for banks acrossEurope. We continue to seek opportunities to extend our bancassurance businessas part of our multi-distribution model, applying our expertise in new andexisting markets." Carlos Egea Krauel, chief executive officer of Cajamurcia, said: "Thisagreement will allow both parties to deploy their competitive advantages.Cajamurcia will be able to offer high quality and value added products in a keystrategic business for us. Aviva, the European leader in life and pensions, haschosen Cajamurcia because of its commercial efficiency and international rating;Cajamurcia's potential to become a key player in the Spanish Mediterranean Arc;and because of its imminent development in Madrid, where it expects to open 50new branches." The transaction is subject to regulatory approvals. -ends- Enquiries: Media Hayley Stimpson, director of external affairs, +44 (0)20 7662 7544 Sue Winston, head of group media relations +44 (0)20 7662 8221 AnalystsCharles Barrows, investor relations director +44 (0)20 7662 8115 Amanda Wilbraham, senior manager investor relations +44 (0)20 7662 2111 Notes to editors: About Aviva Aviva is the leading provider of life and pensions in Europe with substantialpositions in other markets around the world, making it the world's fifth largestinsurance group based on gross worldwide premiums at 31 December 2005. Aviva'sprincipal business activities are long-term savings, fund management and generalinsurance, with worldwide total sales of £41.5 billion and assets undermanagement of £364 billion at 31 December 2006 Aviva Spain Aviva has been operating in the Spanish insurance market for over 114 years, andhas nationwide coverage through a network of more than 275 financial advisersand over 45 branches. Additionally, Aviva is present in the bancassurance marketthrough the acquisition of 50% of Bancaja's long-term savings business, Aseval,in 2000 and subsequent agreements to acquire 25% of Caja Granada life andpensions agency, and 50% of Unicorp Vida, Bia Galicia, and Caja Espana Vida, thelife and pensions operations of Unicaja, Caixa Galicia and Caja Espanarespectively. About Cajamurcia As of December 2006, Cajamurcia ranks in the top-20 Spanish savings banks byassets with Eur 16.2bn. With a cost-income ratio of 37% in 2006, Cajamurcia isthe leading saving bank in terms of efficiency in Spain and one of the fewmedium-sized entities with an "A+" credit rating. (Fitch). Cajamurcia is workingon an ambitious three-year strategic plan to further expand its network beyondMurcia. Currently, Cajamurcia has a client base of over 1 million individualsand a network of 413 branches, 39% of them outside its home region, including asignificant presence in Comunidad Valenciana, Albacete, Almeria and Madrid. -------------------------- (1) Measured in terms of PVNBP This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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