Published On : 2019-07-08
The new joint venture that Crédit Agricole Assurances and ABANCA will create is focused on Portuguese and Spanish insurance markets.
Crédit Agricole Assurances, a French insurance and reinsurance solutions provider, and ABANCA, a Spanish financial institution, have entered into a 30-year partnership to form a 50/50 joint venture for casualty and property insurance business in the Portuguese and Spanish markets. The new joint venture will leverage exceptional customer experience and technological solutions of the two companies to provide innovative products, as per the agreement. The scale acquired by Crédit Agricole Assurances on the Europe insurance market and ABANCA’s customer knowledge will support the new joint venture. Individual corporates and customers with revenue below two million euros will be targeted by the alliance.
“The alliance between ABANCA, an innovative player on its market, and our company perfectly illustrates the potential of Crédit Agricole Assurances’ bancassurance model, which through partnerships outside the Group can be applied internationally, as our company has already demonstrated in the past. Our company strongly believes that its 100% human, 100% digital approach will be offering customers the option to access financial services through any channel, from the most conventional to the most innovative,” said Crédit Agricole Assurances CEO, Frédéric Thomas.
Transaction awaiting approval from competent authorities
“The partnership perfectly fits with the ambitious set out in our new Medium-Term Plan, which is aimed at strengthening our company’s international activity,” added Thomas.
The transaction between Crédit Agricole Assurances and ABANCA is waiting for competent authorities to give their approval for its finalization. Linklaters, a UK-based multinational law firm, is the legal advisor and Arcano Partners, a Spanish independent financial advisory services firm, is the banking advisor for Crédit Agricole Assurances for this transaction. For ABANCA, Boston Consulting Group, a US management consulting company, is the strategy consulting advisor, Uría Menéndez, a Spanish independent law firm, is the legal advisor, and BNP Paribas, a French retail banking company, is the banking advisor.
“To achieve our growth objectives, ABANCA needs to work with a powerful industry player that can complete our company’s strengths. Crédit Agricole Assurances is ideal for partnership, not only because it’s a benchmark company in the European insurance sector but also because of its capacity for exploring new commercial opportunities, digital expertise, and product knowledge,” said ABANCA Chairman, Juan Carlos Escotet Rodríguez.
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