Vienna Insurance Group AG (VIG) is buying Aegon’s insurance, pension, and asset management businesses in Hungary, Poland, Romania, and Turkey for €830 million (around CA$1.29 billion).
In a release, Aegon chief executive Lard Friese said the goal is to simplify the Netherlands-headquartered insurance group’s footprint while strengthening the company’s balance sheet.
“We are sharpening our strategic focus and are concentrating on those countries and business lines where Aegon can create most value,” stated the CEO. “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.”
According to Friese’s camp, proceeds of the sale will be upstreamed to the group and increase Aegon’s financial flexibility to execute on its strategic priorities. Expected to close in the second half of 2021, the transaction represents a multiple of 2.6 times the June 30 book value.
In 2019, Aegon’s businesses in Central and Eastern Europe posted total net underlying earnings of €54 million.
