Aegon to sell Dutch insurance and banking business to ASR for $4.9bn

Aegon has agreed to sell its Dutch pension, life and non-life insurance, banking, and mortgage origination businesses to ASR Nederland (a.s.r or ASR), a Netherlands-based insurance group, in a deal worth $4.9 billion.

The sale proceeds for the Dutch insurance giant will include $2.52 billion in cash and a 29.99% stake in ASR.

The transaction is expected to result in creating a leading company in the pension, life, and non-life insurance markets in the Netherlands.

Jos Baeten — ASR CEO and Chairman of the Executive Board said: “We are excited to announce that a.s.r. and Aegon, two renowned Dutch companies deeply rooted in Dutch society with strong brands, will combine to create a strong and sustainable insurance leader in the Netherlands.

“Combining Aegon Nederland’s business on our platform will reinforce our strengths in the Dutch market, significantly enhance our strategic positioning across both Life and Non-Life and improve our distribution and services capabilities.

For Aegon, the deal will allow it to raise capital from its mature businesses and invest in the areas where the company is on a growth path.

Aegon to sell Dutch insurance and banking business to ASR for $4.9bn. Photo courtesy of Aegon.

Lard Friese — Aegon CEO said: “Today’s announcement marks a major milestone in the history of our company and in our long-term ambition to create leaders in our chosen markets.

“Both Aegon and a.s.r. are deeply rooted in Dutch society and share a long and rich history. Thanks to the hard work and dedication of our employees, Aegon the Netherlands has been able to improve its performance in recent years.

“We’re now building on that success by creating a Dutch insurance leader. I’m convinced that the combination of our companies is in the best long-term interest of all stakeholders and Dutch society at large. Customers of both companies will benefit from a more diversified product offering and strong distribution.”

The combination is expected become leading player in disability insurance and the number three player in property and casualty insurance.

The transaction is expected to be completed in the second half of 2023, subject to customary conditions, including regulatory and antitrust approvals.

However, Aegon’s Dutch asset management activities will continue to be part of its global asset manager.

Aegon will continue to build upon Transamerica’s significant presence in both individual life insurance solutions and the workplace pension business in the US.

The deal, which is subject to regulatory and antitrust approvals, shareholder approvals, and works council consultation processes of both firms, is likely to close in H2 2023.