Aegon has reached an agreement to exit its life, health and pension joint venture with Unnim Banc and sell its 50% stake to Unnim for a total consideration of € 353m. The sale is expected to result in a book gain of approximately € 105m before tax, and to generate an average annual return of 12% on investment. Closing of the transaction is expected in 2Q13E. Aegon's share in underlying earnings before tax of the joint venture totalled € 20m in 2012. This anticipated divestment by Aegon is a consequence of the consolidation underway within the Spanish banking sector. Aegon maintains a long-term commitment to Spain. Aegon has been active in Spain for over thirty years and has established a reputation as a preferred provider of protection products through its network of bancassurance joint ventures. Our View: Aegon is in the process of terminating some strategic distribution partnerships with some of its (financially troubled) partners in Spain (E.g. Civica/CAM). The LT strategic partnership with Banco Santander to distribute life and general insurance products through its extensive network of 4,600 bank branches, allows to replace them and maintain a strong footprint in Spain. Conclusion: We maintain our Buy rating and € 6.50 target.