Dutch insurer Aegon to sell Central & Eastern European business to Vienna insurance

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Dutch insurer Aegon to sell Central & Eastern European business to Vienna insurance

On Sunday, Aegon NV, the Hague-headquartered Dutch multinational life insurance, pension and asset management company employing over 26,000 people to date, had issued a statement saying that the insurance industry behemoth would sell off its Central and Eastern European business to Austria’s Vienna Insurance Group for a stark sum of €830 million ($993 million) in a bid to raise fresh liquidities that might just help the Dutch insurer see through the pandemic crisis.

On top of that, Aegon had also added in the statement that its latest divestiture would involve insurance, pension and asset management businesses in Hungary, Poland, Romania and Turkey, while the Hague, Netherlands-based insurer was expecting the €830 million deal to close by the second half of 2021.

Aegon divests Central & Eastern Europe assets to grapple with pandemic crises

In point of fact, latest divestment from Aegon NV that used to raise more than two-thirds of its revenues in the United States, came forth month after the Dutch insurer had beet met with a 30 per cent plunge in underlying pre-tax earnings in the first half of 2020, mostly due to a rise in mortality rate alongside a near-zero interest rate in the United States.

Concomitantly, shortly after the reveal of its perilous plunge in earnings over the first half of the year with little signs of recovery on sight in a near-term outlook, media headlines had reported in October that the Dutch insurer had been working with the US lender and financial services provider JPMorgan Chase & Co.

in a bid to peel off its businesses in Central and Eastern Europe. Meanwhile, citing that the divestments would enable the Dutch insurer to regain its footprints much-faster in key markets such as the United States, Aegon Chief Executive Lard Friese said in a statement on Sunday, “This transaction will simplify Aegon’s footprint and strengthen our balance sheet”.