Paris, 10 July 2014
CNP Assurances has entered into an exclusive long-term distribution agreement with Santander Consumer Finance (Banco Santander Group) and has agreed to acquire a 51% stake in Santander Consumer Finance's life and non-life insurance subsidiaries.
The partnership includes all the life risk insurance products; Payment Protection Insurance (PPI) will be developed in priority. It covers a perimeter of 10 European countries where Santander Consumer Finance enjoys leading market positions: Germany, Poland, Italy, Spain, Austria, Portugal, Norway, Sweden, Denmark and Finland.
Santander Consumer Finance operates through a multi-channel distribution network, including partnerships with distributors (original equipment manufacturers, durable dealers…), branches dedicated to consumer credit as well as direct-to-customer channels. By combining CNP Assurances’ expertise in personal insurance with Santander Consumer Finance’s proven distribution capabilities, this operation will create value for both Groups and will allow Santander Consumer Finance’s 12 million clients to benefit from an enriched offering.
CNP Assurances thus implements its strategic priority of development in life risk insurance in Europe. Indeed, this operation allows the Group to achieve immediate scale in several European markets with strong fundamentals, including in Germany, the leading economy of the Euro-zone.
In 2013, Santander Consumer Finance’s insurance subsidiaries generated revenues close to €600 MM. The activity presents a strong potential, both in terms of margins and growth.
Consideration for the transaction amounts to €290 MM and may be adjusted upwards or downwards based on financial performance observed in the following years.
The transaction will be financed from existing resources and is expected to close by year end 2014, subject to regulatory approvals.
“This agreement marks a key step in the implementation of our strategic priorities in Europe. With Banco Santander, Europe’s first retail bank, we create a partnership fulfilling CNP Assurances’ ambitions.” said CNP Assurances’ CEO Frédéric Lavenir.
Javier Marin, CEO of Banco Santander, stated: “We are confident that through CNP Assurances' expertise and our distribution capabilities, this partnership will create value for both of us.”
For further information on the partnership : http://www.cnp.fr/en/Investor-Analyst.