Allianz Popular was set up in 2011 between Allianz and Spanish bank Banco Popular, which was acquired by Santander in 2017.
The joint venture covered life insurance, pensions, asset management and the distribution of non-life products in the Iberian country
But the German firm has agreed to sell Santander its 60% stake, worth €936.5m (£837m, $1.06bn).
Still in the country
Allianz will continue to operate in the Spanish life and non-life insurance markets through two of its subsidiaries, Allianz Compañia de Seguros y Reaseguros and Fénix Directo Compañia de Seguros y Reaseguros.
The two Spanish firms generated €3.3bn in gross written premiums in 2018, while Allianz Popular had gross written premiums of €300m and €12.5bn in assets under management during the same year.
The deal is subject to regulatory approval and is expected to be completed in the first quarter of 2020.
International Adviser contacted Allianz Spain for further details, but nobody was available for comment.
It remains unclear whether the end of the joint venture will have an impact on the insurer’s distribution network in the country, and whether customers of Allianz Popular will be transferred to the Spanish subsidiaries or if they will remain with the firm under Banco Santander.