Aviva partners Bank Zachodni for Polish expansion

by Gill Montia

Story link: Aviva partners Bank Zachodni for Polish expansion

Aviva plc, the global insurance and investment group, has entered into an exclusive 15 year partnership with Bank Zachodni WBK (”BZ WBK”), the Polish bank.

Under the agreement, BZ WBK will sell insurance products throughout its extensive network in Poland.

Two joint venture companies will be established, with one specialising in life insurance and the other in general insurance.

Aviva and BZ WBK will each hold 50% of the equity share capital and both will contribute 50% of the working capital for the new companies, which will amount to £13.2 million in total.

The products will be available to BZ WBK’s 1.4 million customers through its network of over 400 branches.

Aviva and BZ WBK have worked together informally for over a decade and Philip Scott, group finance director of Aviva, believes that the exclusive agreement “will significantly enhance Aviva’s distribution network in Poland”.

Aviva is launching a direct motor insurance service in the country this month and according to Mr Scott “this partnership will give us a significant competitive advantage in this rapidly growing market.”

The joint venture companies are expected to be operational in the third-quarter of 2008 although the agreement does remain subject to regulatory approval.

BZ WBK is listed amongst of top five Polish banks, in terms of assets.