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The Zürich Financial Services Group (Zürich), the most important Swiss direct insurer, has taken another step to improve its position in the Spanish market. The group from Zürich has purchased 50% of the general and life insurance companies of Caixa Sabadell.

The purchase price amounted to 360 million dollars (227 million euros), added to an additional payment of 150 million dollars (96 million euros) depending on future results of the two subsidiaries of the Caixa, which will now sell their products exclusively through the branch network of Caixa Sabadell.

The Caixa currently works principally in Catalonia, but according to a press release from the Zurich group is planning to open branches in Madrid and Valencia.

The Swiss insurance company is currently in fifth position in the highly fragmented Spanish market. The aim of this agreement is to increase its range of products and to consolidate the position of the insurance subsidiaries of Caixa Sabadell. The transaction should go ahead in the third quarter, administrative approval permitting.