CaixaBank and Mapfre have agreed that the bank will pay the insurer 570.8 million euros for the breaking of the bancassurance agreement that Mapfre had with Bankia, as reported by both companies to the National Securities Market Commission (CNMV).
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The parties have reached an agreement whereby CaixaBank will buy 51% of the company Bankia Vida from Mapfre for 323.7 million euros, an amount equivalent to 110% of the market value of the life business determined by an independent expert designated by both parties.
In addition, CaixaBank has paid Mapfre 247.1 million euros in compensation for the termination of the agency contract for the distribution of non-life insurance, an amount equivalent to 110% of the value of the new production (excluding the current portfolio) of the non-life business determined by the independent expert.
Disagreement in the assessment
In any event, the two entities have agreed to arbitrate Mapfre’s right to receive an additional 10% of the values of the life and non-life businesses, as well as CaixaBank’s obligation to pay said amount.
This additional compensation that will be submitted to arbitration procedure has a value of up to 52 million euros, so the final amount that Mapfre would receive could rise to 623 million euros.
Mapfre indicates to the CNMV its “disagreement” with the “valuation of the life insurance business determined by the independent expert, due to non-compliance with the instructions contained in the assignment for its determination.” For this reason, it points out “reserve of legal actions in defense of their legitimate rights”.