Spanish lender Banco Santander SA and Dutch insurer Aegon NV agreed to expand their partnership in Spain.

The joint venture, which generated 12% average yearly growth in gross written premiums over the period from 2014 to 2017, will expand to cover term life and selected lines of nonlife insurance, following the integration of Banco Popular Español SA into Banco Santander. Both Aegon and Santander will provide products, including household, accident and health insurance, under the venture.

Aegon agreed to an upfront consideration of €215 million and an additional amount of up to €75 million to be paid after five years, depending on the performance of the partnership. Aegon said the consideration will be funded from holding excess cash.

The final terms of the agreement, including completion and payment date, are subject to due diligence, regulatory approval and the process of termination of the alliance between Banco Popular and Allianz Group in Spain.

Santander noted it does not anticipate a material change to its common equity Tier 1 fully loaded capital and group results, while Aegon expects substantial growth from the new agreement.