Business overview  Results of operations – Spain 78 Overview of Spain Aegon entered the Spanish market in 1980 with the purchase of local insurer  Seguros Galicia. In recent years, Aegon’s activities in Spain have developed  through distribution partnerships with Spanish banks. Until 2010, Aegon Spain operated through two subsidiaries,  Aegon Seguros Salud and Aegon Seguros de Vida, which  merged to form Aegon Espana S.A. de Seguros y Reaseguros,  as of January 1, 2011. Aegon Administracion y Servicos A.I.E.,  a separate legal entity, provides administration and operations  services to all Aegon companies in Spain, including joint  ventures with third parties. In addition, Aegon operates through  partnerships with the financial entities Banco Santander, Cajatres  and Liberbank.  Aegon sold its stake in the partnership with Unnim on June 3,  2013, and with Caja Mediterraneo on July 19, 2013.  Aegon Spain’s main subsidiaries and affiliates are: Under Aegon’s partnership with Caja Badajoz, agreed in 2005,  Aegon and Caja Badajoz set up a 50/50 joint company to sell  life insurance and pensions. Caja Badajoz has a network of  229 branches, primarily in the western region of Extremadura,  which adjoins Spain’s border with Portugal. In 2011, Caja Badajoz  Vida entered into a SIP (Institutional System of Protection)  named Grupo Cajatres, currently integrating Caja Inmaculada,  Caja Circulo de Burgos and Caja Badajoz. Caja Cantabria is one of the largest savings banks in northern  Spain, located primarily in its home province of Cantabria.  In 2011, Caja Cantabria Vida y Pensiones entered into a SIP  named Liberbank, currently integrating Cajastur (320 branches),  Caja Extremadura (225 branches) and Caja Cantabria  (152 branches). The challenging economic situation in Spain, which is expected  to continue in 2014, has affected all channels, particularly  bancasurance. The banking sector has undergone deep change  since 2012, when a structural reform program was implemented  in Spain. This resulted in the restructuring of the banking sector  and triggered a wave of mergers and acquisitions aimed at  consolidation, an ongoing process which continues to affect  Aegon’s partners Liberbank and Cajatres. In December 2012, Aegon and Banco Santander entered an  alliance for the distribution of certain insurance products.  This became fully operational in June 2013 following completion  of the precedent conditions and administrative authorizations.  Banco Santander is the largest financial institution in Spain,  with 4,548 branches nationwide. Aegon’s agreement with Banco  Santander concerns the business lines of pure life risk and the  general insurance products accident, home and commercial  multi-risk insurance, and sickness. These are to be sold through  two insurance entities, Aegon Santander Vida for pure life risk  products, and Aegon Santander Generales for general insurance  products. Aegon’s share in each entity is 51%. Annual Report 2013 The main distribution channel in the Spanish market is  bancassurance, which accounts for 72% of life sales, compared  to 27% for brokers and a negligible share for direct customers. Aegon Spain distributes its products nationwide through partner  branches and its own sales network.  Caja Badajoz Vida y Pensiones Organizational structure Cantabria Vida y Pensiones and Liberbank Vida Overview of sales and distribution channels Aegon Santander Generales Seguros y Reaseguros  and Aegon Santander Vida Seguros y Reaseguros ■ Aegon Espana S.A. de Seguros y Reaseguros; ■ Aegon Administracion y Servicos A.I.E.; ■ Caja Badajoz Vida y Pensiones (50%), in partnership  with Cajatres; ■ Cantabria Vida y Pensiones (50%), in partnership  with Liberbank; ■ Liberbank Vida (50%), in partnership with Liberbank; ■ Aegon Santander Generales Seguros y Reaseguros (51%),  in partnership with Banco Santander; ■ Aegon Santander Vida Seguros y Reaseguros (51%),  in partnership with Banco Santander.