Zurich becomes leading player in Spanish market
Zurich Financial Services has announced it is to take control of the life insurance, pension and general insurance operations of Spain's Banco Sabadell.
The company said on Friday it was buying 50 per cent stakes in the businesses for a price of up to €900 million (SFr1.46 billion).
The move comes just a day after Zurich pulled out of the auction for Royal Bank of Scotland’s insurance business, in which it had been considered the frontrunner.
Zurich is to pay €650 million plus an extra payment of up to €120 million linked to future performance for Sabadell’s life insurance and pension companies.
In a statement, Zurich said it would pay a further €100 million plus a potential €30 million for half of Sabadell’s general insurance company.
“We have always said we wanted to increase our market position in this important market,” commented company chief executive James Schiro.
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