Insurer CGNU has agreed a deal with Spain's tenth largest savings bank Caja Espana, to buy 50% of its life and pensions unit.
CGNU said the deal formed part of its plan to create a nationwide bancassurance network in Spain.
The UK's largest insurance group said it would buy the stake in Caja Espana Vida for an initial consideration of £88m in cash.
Caja Espana has 535 branches and 1.3 million customers. This will increase CGNU's bancassurance network to more than 3,000 branches and about 8 million potential customers.
The group said the partnership would enhance its position in the Spanish long-term savings market, where bancassurance accounts for more than 80% of new business sales.
The deal is expected to be completed by 31 January 2002.
