SNS Reaal (SR.AE) has reached an agreement with five Dutch consumer associations on a financial compensation program for local customers who were overcharged for SNS Reaal insurance products, the Dutch bank said Wednesday.

The value of the compensation program totals EUR320 million. This includes an amount of EUR52.5 million for a fund for clients "in distressed situations", the bank said in a statement.

SNS Reaal said it expects to have made sufficient provisions for this compensation scheme in its 2008 financial accounts. SNS Reaal's compensation scheme applies to all its 1,030,000 individual investment based insurance policies. The bank said it estimated that 40% of these are eligible for compensation.

Fortis Bank Netherlands analyst Klaas Kruijer said he is positive about the agreement. "The provision of EUR320 million for the settlement is well below my estimation of EUR460 million", he said, adding the folding of the provision into the company's 2008 accounts will have no further impact on 2009.

SNS Reaal Chairman Sjoerd van Keulen confirmed with Dow Jones Newswires that the settlement will have no impact on his bank's accounts in 2009.

The agreement applies to clients of SNS Bank, Reaal Levensverzekeringen, Zwitserleven life insurance, DBV and all legal predecessors, including AXA Nederland and Winterthur.

SNS Reaal's settlement follows arrangements by insurers such as Fortis (FORSY), Aviva PLC's (AV.LN) Delta Lloyd and ING's (ING.AE) Nationale Nederlanden, which have also paid customers compensation for being over-charged on similar products.

Two representatives of consumer and shareholders' associations later Wednesday urged the two remaining major Dutch insurers, Aegon (AEG) and Eureko, to conclude compensation settlements with their organizations before the summer of this year.

At 1000 GMT, SNS Reaal stocks were up 6% at EUR3.16, amid a wider Dutch market up 1.74%.

-By Bart Koster; Dow Jones Newswires; +31 20 571 5201; bart.koster@dowjones.com