Aegon, a Dutch insurer, and Banco Santander have completed the expansion of their partnership in Spain.

The companies agreed to expand their life and non‑life insurance partnership, following Banco Santander’s takeover of Banco Popular in 2018.

As part of the expansion, Aegon’s insurance joint ventures with Banco Santander in Spain completed the acquisition of the in force term life policies previously sold through Banco Popular branches.

The company also obtained the right to write new term life and selected lines of non-life policies through the Banco Popular branches acquired by Banco Santander.

The deal was completed after fulfilling all closing conditions, including the termination of existing alliances of Banco Popular.

The consideration for Aegon’s 51% stake in the joint venture with Banco Santander includes an upfront amount of €187m.

This amount is lower than the €215m communicated in July 2018 due to the results of the in-force portfolio which accrued to Santander till closing. It is also due to the previously agreed contingent payment of up to €75m in 2024 which is dependent on the partnership’s performance.

The deal is said to have a negative impact of 3 percentage points on the Group Solvency II ratio.

Last year, Canada Life Reinsurance partnered with Aegon in a long-term longevity reinsurance agreement to cover €12bn in-force liabilities.