US based diversified conglomerate Berkshire Hathaway has agreed to acquire Spain based Caixabank's life insurance operation, VidaCaixa, in a deal valued at EUR600m.
The seller will get EUR524m pretax gain following the completion of transaction, while the acquirer is expected to receive future profits from the portfolio.
Sale of life underwriting business will enable the Spanish lender to shore up necessary capital to comply with financial requirements, laid by the regulators, while freeing it from risks associated with insurance operations.
It is anticipated that the deal will not have any financial impact on CaixaBank's insurance operations, as it will continue managing the policies.
Berkshire Hathaway has invested $5bn in US investment bank Goldman Sachs, while it injected $5bn into Bank of America, last year, as part of its expansion plan.
The acquirer has also inked various reinsurance deals with other insurers, such as AIG, Lloyd's of London and Swiss Re.
