Allianz, Generali, Liberty in bancassurance bid

Allianz, Generali and Liberty Mutual are bidding against each other to invest in the bancassurance arm of Spanish banking organisation BBVA, according to a Reuters report.

The sale is reportedly let by Bank of America and kicked off towards the end of 2018. It will comprise of a joint venture agreement within a network of insurance from Spain, Mexico and Latin America, sources stated.

The entire network is valued at about EUR1.5 billion (USD1.7 billion) and provides products from life to health, home and car insurance.

BBVA’s insurance unit in Spain witnessed a 4.8 percent profit rise to EUR311 million in 2018.  The bidders will be able to acquire at least 50 percent in each of BBVA’s insurers across the world, with the biggest businesses based in Spain and Mexico. However, BBVA’s life insurance network in Spain remains a core part of the Spanish lender and will not be included in the sale.

Allianz, Generali and Liberty Mutual are in the process of submitting non-binding proposals, one of the sources said, and final bidders will be shortlisted toward the end of March.