Dutch insurance group Aegon has agreed to sell its insurance, pension, and asset management business in Hungary, Romania, Poland, and Turkey for €830 million to Vienna Insurance Group Wiener Versicherung Gruppe (VIG).

The sale of the Central and Eastern European businesses will simplify the footprint of Aegon, while consolidating its balance sheet.

Lard Friese – CEO of Aegon said: “We are sharpening our strategic focus and are concentrating on those countries and business lines where Aegon can create most value. I would like to thank our employees in Hungary, Poland, Romania and Turkey for their significant contribution to Aegon over the years.

“We believe that our businesses will benefit greatly from the vast experience of VIG, a leading insurance group in the region.”

Last year’s total net underlying earnings of the divested businesses amount to €54 million.

Aegon said that the proceeds from the sale will be upstreamed to the group and will boost its financial flexibility to carry out its strategic priorities, which include deleveraging.

Vienna Insurance Group said that Aegon’s non-life and life insurance firms and also pension funds, asset management and service companies in the countries complement its existing portfolio.

The acquisition will help the Austrian insurance group to further expand its position in Central and Eastern Europe, while taking it to the first position in Hungary’s insurance market.

Additionally, Vienna Insurance Group will extend its scope of activity in the pension fund business in the region besides becoming active in the life business in Turkey for the first time.

Elisabeth Stadler – CEO of Vienna Insurance Group said: “The acquisition of the Central and Eastern European business of Aegon is an important step for our Group to sustainably strengthen our leading position in CEE and to take advantage of new opportunities. The portfolios of the companies included in the scope of the transaction perfectly complement our existing units and strengthen our diversification in these countries.

“In Hungary, we are making the leap to the top. This will make us – as in Austria – the market leader in all our immediate eastern neighboring countries (Czech Republic, Slovakia and Hungary). In Turkey, we succeed in entering the life insurance market and in Poland, Romania and Hungary we can significantly expand our potential in the pension fund business. B

“By acquiring the asset management company of Aegon in Hungary, we are not only expanding our own asset management activities, we are also gaining valuable know-how and resources.”

The deal is subject to receipt of regulatory and antitrust approvals and is anticipated to be completed in the second half of 2021.

  Aegon, Elisabeth Stadler, Hungary, Insurance acquisition news, Insurance industry news, Lard Friese, Poland, Romania, The Netherlands, Turkey, Vienna Insurance Group