Sabadell sells life insurance arm to funds consortium
Spain’s Banco Sabadell has signed an agreement to sell its life insurance subsidiary to a group of funds led by Ember, for an undisclosed sum.
The sale of life insurer Mediterráneo Vida, with customer accounts valued at €1.9bn, is subject to regulatory approvals, the Barcelona based bank said.
Sabadell will continue managing the relationship with their customers and distribution will continue through operator Bansabadell Mediación.
The purchase commitment was made by a consortium of funds led by Ember, which valued “the quality of a specialist team that manages the business, the quality of the portfolio and technology platform” of the life insurer.
Sabadell, for its part, has valued the profile of the buying consortium and Ember, as a “long-term fund specialised in acquiring portfolios of savings and sponsored by institutional financial investors”.
Sabadell took full control of Mediterraneo Vida by buying a stake from Dutch firm Aegon back in 2013, as banking reforms put an end to insurance joint ventures in Spain.
At the time, Sabadell paid Aegon just under €450m for the 49.9% stake it did not yet own in Mediterraneo Vida.