Agreement with Abbey Life Assurance Ltd

RNS Number : 0941I

Banco Santander S.A.

19 July 2012

 

 

Press Release                                      

 

 

Santander signs a reinsurance agreement with Abbey Life Assurance Ltd, a unit of Deutsche Bank AG, for its life risk insurance portfolio
 in Spain and Portugal  

§ The agreement monetizes Santander's life risk insurance portfolio in Spain and Portugal, resulting in a pre-tax capital gain for Santander of EUR 490 million.

Madrid, July 19, 2012 - GrupoSantander has reached an agreement with Abbey Life Assurance Ltd, subsidiary of Deutsche Bank AG, under which Abbey Life Assurance Ltd will reinsure 100% of the individual life risk portfolio of the insurance companies of Banco Santander in Spain and Portugal.

This reinsurance transaction is unique in the Spanish and Portuguese insurance markets and will enable Santander to monetize its life risk insurance portfolio, generating an extraordinary result of EUR 337 million after tax.

The policies ceded to Abbey Life Assurance Ltd consist of the portfolio as of June 30, 2012. This reinsurance agreement does not involve any changes for Santander customers as services will continue to be provided by Santander's insurance companies.

Grupo Santander will continue to offer through its branches in Spain and Portugal products designed by its insurance companies as the agreement reached with Abbey Life Assurance Ltd does not involve any commitment on future distribution and is limited to the portfolio existing at June 30.

Grupo Santander will use the pre-tax extraordinary capital gain of EUR 490 million to partially cover provisions which will be charged to the period ended June 30, in line with the royal decrees of  February and May regarding provisioning of real estate assets in Spain .

 

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