£13.2m bancassurance partnership with Bank Zachodni announced
Aviva plc ("Aviva"), the international savings, investments and insurance group, has entered into an exclusive 15 year bancassurance partnership with Bank Zachodni WBK ("BZ WBK") to sell life and general insurance products through BZ WBK's bank network in Poland.
Under the terms of the agreement, Aviva and BZ WBK will each hold 50% of the equity share capital of two newly established joint venture companies and will each contribute 50% of the total £13.2million1 working capital for the new companies.
The joint venture companies will manufacture life and general insurance products respectively, distributed through the exclusive arrangement with BZ WBK. The agreement will provide access to BZ WBK's 1.4 million customers through its network of over 400 branches across Poland. BZ WBK is a top five player in terms of assets in the Polish market.
Philip Scott, group finance director of Aviva, said: "I'm delighted we've agreed a long-term exclusive partnership with BZ WBK, which builds on a relationship dating back more than a decade. The bancassurance arrangement will significantly enhance Aviva's distribution network in Poland, complementing our well-established direct sales force and the direct motor insurance service which will launch later this month. The Polish economy is booming and this partnership will give us a significant competitive advantage in this rapidly growing market."
The agreement remains subject to regulatory approval. The joint venture companies are expected to be operational in the third quarter 2008.