Dutch insurer Aegon is going to sell its Central and Eastern European business to Vienna Insurance Group (VIG) for €830mn, the company said on November 29.
The transaction follows a difficult first half of the year for Aegon in Hungary, Poland, Romania and Turkey, where insurance markets suffered the impact of the coronavirus (COVID-19) pandemic.
VIG will take over Aegon’s non-life and life insurance companies as well as pension funds, asset management and service companies in these countries, which “ideally complement” VIG's existing portfolio, the company said. The deal also introduces VIG to Turkey’s life insurance market.
For Aegon, the “transaction will simplify footprint and strengthen our balance sheet," Aegon’s CEO Lard Friese said in a statement.
"We are sharpening our strategic focus and are concentrating on those countries and business lines where Aegon can create most value,” Friese added.
The proceeds from the transaction represent a multiple of 2.6 times the book value as of June 30, Aegon said.
Two years ago, Aegon had already sold its Czech and Slovak subsidiaries for €155mn. Two-thirds of Aegon's business is in the US market, where it is present through the Transamerica brand.