Dutch insurance group Aegon has reached an agreement to expand its existing partnership with Banco Santander in Spain.

The extended agreement includes term life and selected lines of non-life insurance and comes after Banco Santander’s takeover of the Banco Popular franchise last year.

Under the terms of the agreement, Aegon will pay €215m upfront and an additional amount of up to €75m over the next five years, pending the performance of the partnership.

Aegon CEO Alex Wynaendts said: “I am delighted to announce an expansion of the existing relationship with Banco Santander, which will give us access to an additional client base of four million customers in Spain.

“From the very start of the partnership, Santander and Aegon have created a successful collaboration in Spain, generating healthy returns and remittances to the group.”

The final terms, including closing and date of payment of the transaction are pending receipt of regulatory approval, several other conditions and to the process of terminating the existing alliances of Banco Popular.

Aegon stated that its joint venture with Banco Santander in Spain has been commercially successful, with an average yearly growth in gross written premiums of 12% over the period 2014-2017.

The insurer believes that the new agreement with Santander lead to more growth going forward.