GrupoSantander (BNC.L,BSBR: Quote) said it has reached an agreement with Abbey Life Assurance Ltd., subsidiary of Deutsche Bank AG (DB: Quote), 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 will enable Santander to monetize its life risk insurance portfolio, generating an extraordinary result of 337 million euros after tax.
The policies ceded to Abbey Life Assurance Ltd. consist of the portfolio as of June 30, 2012.
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 this pre-tax extraordinary capital gain of 490 million euros to partially cover provisions required by the royal decrees of February and May regarding provisioning of real estate assets in Spain, pending as of June 30, 2012.
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by RTT Staff Writer
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