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December 20, 2012
Brattle Economists Provide Testimony on Behalf of Aviva Resulting in €608 Million Settlement

Aviva Plc., the UK´s second-biggest insurer, has announced that it has reached an agreement with the nationalized Spanish lender, Bankia S.A, to settle a dispute over the breach of an exclusive distribution agreement. As a result of the agreement, Bankia will pay €608 million to Aviva for its 50 percent stake in the life insurer joint venture Aseval. The agreement follows an arbitration launched by Aviva last year after the formation of Bankia from seven regional savings banks, including Caja Madrid and Valencian-based Bancaja. In May 2000, Aviva had bought a 50 percent stake in insurer Aseval from Bancaja. As a result of this transaction, Aviva assumed management control of the joint venture, and also signed an exclusive agreement with Bancaja to distribute Aseval´s life insurance and pension products. Caja Madrid – the largest savings bank within the new merged lender, Bankia – already had a similar exclusive agreement in place with the Spanish insurer Mapfre. Aviva felt that its exclusive distribution agreement with Bancaja was breached when Bancaja merged with the other six saving banks and formed Bankia in late 2010. Brattle principal Dr. José Antonio García and Academic Advisor Juan Delgado provided testimony on behalf of Aviva in the legal proceedings before the Arbitration Court in Madrid, Spain. For more information on this settlement agreement visit here.