Vienna Insurance coverage Group (VIG) acquired the enterprise of the Dutch insurer Aegon in Hungary for €620 million ($682.6 million) after receiving approval from Hungarian regulatory authorities.
The deal, which closed on March 23, 2022, consists of the acquisition of two Dutch holding firms (Aegon Hungary Holding B.V., Aegon Hungary Holding II B.V.), which maintain 100% of the shares within the Hungarian Aegon firms.
VIG now holds a 55% stake in these companies, whereas the Hungarian state-owned holding firm Corvinus will maintain a forty five% stake, in a separate acquisition that’s scheduled to be accomplished on March 25. VIG had beforehand agreed to share the possession of the companies with Corvinus to be able to salvage the deal, which the Hungarian authorities had blocked.
The VIG Group will retain a controlling majority and the operational administration of the Hungarian firm.
Market Chief
Along with the present VIG insurance coverage firm UNION, VIG will turn into the market chief in Hungary with a market share of over 19%.
Based on preliminary figures, the premium quantity of the Hungarian Aegon insurance coverage firm amounted to €401 million ($441.5 million) and the revenue earlier than taxes was €51 million ($56.2 million) in 2021. Round 1,000 workers serve greater than 1.5 million insurance coverage prospects.
“With the closing in Hungary, we are going to obtain our goal of being among the many prime three out there by the top of 2025 already in 2022 and take over the market management in Hungary. We purchase very effectively positioned firms that enrich our broad diversification and provide us new alternatives in asset administration and pension fund enterprise. These are two enterprise areas that we wish to intensify and increase as a part of our ongoing technique programme VIG 25,” defined CEO Elisabeth Stadler, in a press release.
On Nov. 29, 2020, Aegon agreed to promote its insurance coverage, pension, and asset administration companies in Central and Jap Europe (CEE) for VIG for €830 million ($913.7 million). VIG is ready for native regulatory approvals earlier than continuing with the acquisition of Aegon’s remaining CEE enterprise with firms in Poland, Romania and Turkey.
Aegon mentioned the sale of its Hungarian companies will lead to a big enhance in its money capital, whereas offering the corporate with the monetary flexibility to cut back its debt, by way of a €375 million ($412.8 million) tender provide, and full a €300 million ($330.3 million) share buyback.
The completion of the gross sales “marks an necessary step within the transformation of Aegon as we slim our strategic focus to pick out core and development markets, and additional strengthen our steadiness sheet,” mentioned Lard Friese, CEO of Aegon.
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