Aegon, ASR will merge Dutch insurance operations, Aegon to receive 2.5 billion euros
Aegon, ASR will merge Dutch insurance operations, Aegon to receive 2.5 billion euros
Aegon NV said on Thursday smaller rival ASR would acquire its insurance operations in the Netherlands in a deal that would see ASR replace it as the second-largest Dutch insurer.

In exchange, Aegon will receive a 29.99% stake in ASR and 2.5 billion euros ($2.52 billion), the companies said in a joint statement.

The deal, which would create a strong rival for top Dutch insurer NN Group, must be approved by shareholders and regulators, and the companies said they expected it to close in the second half of 2023.

“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,” Aegon Chief Executive Officer Lard Friese said in a statement.

The combined company would be largest in the Dutch disability insurance and the number three in property and casualty insurance, as well as taking a “leading” position in pensions, they said.

Other benefits of the deal include more scale in originating and servicing Dutch mortgages, and cost savings from combining their closed individual life portfolios.

Other key insurers in the Dutch market include Allianz, Athora, and health insurer Achmea.

Aegon is based in the Netherlands but does the majority of its business in the United States, where it is known for the Transamerica brand. It said that of the cash proceeds, it would return 1.5 billion euros to shareholders and use 800 million euros to reduce leverage.

ASR has most of its operations in the Netherlands.

Source: Yahoo Finance

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