Banco Santander (Brasil) SA and HDI Seguros SA reached a binding agreement to create a new insurance company called Santander Auto, which will underwrite, offer and commercialize auto insurance policies through a fully digital platform.

Sancap Investimentos e Participações SA, a unit of Santander Brasil, will hold a 50% stake in Santander Auto, while HDI Seguros will hold the remaining 50%, the Brazilian bank said in a filing.

The completion of the deal is subject to certain conditions, including regulatory approvals.