The Spanish insurer Mapfre reported the end of its business ties with the insurance business of Bankia through an agreement of 571 million euros (645.12 million dollars) with Caixabank, which the bank acquired at the beginning of this year.
Caixabank has agreed to pay 324 million euros for Mapfre’s 51% stake in Bankia Vida and 247 million euros in compensation for the termination of a non-life insurance distribution contract, both companies told the National Stock Market Commission (CNMV).
The amount agreed for Bankia’s life business represents 110% of its market value, while the compensation corresponds to the same percentage of the value of the new production of Bankia’s non-life business, excluding the current portfolio, according to the valuation of an independent expert.
However, both parties have agreed to submit to arbitration whether Caixabank would be obliged to pay Mapfre an additional 10% of the values of the non-life and life businesses determined by the independent expert, which would amount to an additional amount of 52 million euros. euros.