GENERALI AND METLIFE SIGN NEW AGREEMENTS WITH SPAIN’S BSCH

Italian insurer Generali said today that it had reached a new bancassurance accord with Spanish bank Banco Santander Central Hispano (BSCH), following the merger of Banco Central Hispano (BCH) with Banco Santander. In exchange for its holdings in BCH Pensiones, BCH Vida and BCH Seguros Generales, Generali will gain 20% of a new bancassurance firm, with BSCH having 60% and the remaining 20% being held by Banco Santander. Meanwhile, US-based Metropolitan Life Insurance has also reached a new agreement with BSCH, under which the bancassurance portfolio of their Spanish joint venture Seguros Genesis which is sold through Banco Santander branches will be transferred to a new company, established for BSCH branch networks. BSCH will hold 60% of the new company, with MetLife having 20% and Generali 20%. All other businesses, including a professional agency force and direct sales motor insurance, will remain part of the Seguros Genesis venture, with MetLife holding 80% and BSCH trimming its stake to 20%. BSCH will absorb the portfolio of Seguros Genesis’ Portugal branch.