THE HAGUE, Netherlands–(BUSINESS WIRE)–Aegon has agreed to promote its insurance coverage, pension and asset administration enterprise in Hungary, Poland, Romania and Turkey for EUR 830 million to Vienna Insurance coverage Group AG Wiener Versicherung Gruppe (VIG).
“This transaction will simplify Aegon’s footprint and strengthen our steadiness sheet”, stated Lard Friese, CEO of Aegon. “We’re sharpening our strategic focus and are concentrating on these nations and enterprise traces the place Aegon can create most worth. I want to thank our workers in Hungary, Poland, Romania and Turkey for his or her important contribution to Aegon over time. We consider that our companies will profit vastly from the huge expertise of VIG, a number one insurance coverage group within the area.”
The proceeds quantity to EUR 830 million and signify a a number of of two.6 occasions the e-book worth on June 30, 2020. This may end in a rise in IFRS fairness of EUR 505 million of which EUR 362 million will probably be acknowledged as e-book acquire primarily based on the steadiness sheet place on June 30, 2020. The full internet underlying earnings of Aegon’s companies in Central and Jap Europe amounted to EUR 54 million for 2019, implying a transaction a number of of 15 occasions internet underlying earnings. On account of the transaction, the Group Solvency II ratio is estimated to enhance by roughly 8 proportion factors.
The proceeds will probably be upstreamed to the Group and enhance Aegon’s monetary flexibility to execute on its strategic priorities, together with deleveraging. On December 10, 2020, Aegon will present an replace on its technique and monetary targets at its digital Capital Markets Day.
The transaction is topic to regulatory and antitrust approvals customary for transactions of this nature and is anticipated to shut within the second half of 2021.
Aegon’s roots return greater than 175 years – to the primary half of the nineteenth century. Since then, Aegon has grown into a global firm, with companies in additional than 20 nations within the Americas, Europe and Asia. At this time, Aegon is among the world’s main monetary providers organizations, offering life insurance coverage, pensions and asset administration. Aegon’s goal is to assist folks obtain a lifetime of economic safety. Extra info on aegon.com.
The statements contained on this doc that aren’t historic details are forward-looking statements as outlined within the US Personal Securities Litigation Reform Act of 1995. The next are phrases that establish such forward-looking statements: goal, consider, estimate, goal, intend, might, anticipate, anticipate, predict, undertaking, relying on, plan, proceed, need, forecast, objective, ought to, would, may, is assured, will, and related expressions as they relate to Aegon. These statements are usually not ensures of future efficiency and contain dangers, uncertainties and assumptions which might be troublesome to foretell. Aegon undertakes no obligation to publicly replace or revise any forward-looking statements. Readers are cautioned to not place undue reliance on these forward-looking statements, which merely mirror firm expectations on the time of writing. Precise outcomes might differ materially from expectations conveyed in forward-looking statements because of modifications attributable to numerous dangers and uncertainties. Such dangers and uncertainties embody however are usually not restricted to the next:
- Modifications on the whole financial and/or governmental circumstances, significantly in the US, the Netherlands and the UK;
Modifications within the efficiency of economic markets, together with rising markets, reminiscent of with regard to:
- The frequency and severity of defaults by issuers in Aegon’s fastened revenue funding portfolios;
- The consequences of company bankruptcies and/or accounting restatements on the monetary markets and the ensuing decline within the worth of fairness and debt securities Aegon holds; and
- The consequences of declining creditworthiness of sure public sector securities and the ensuing decline within the worth of presidency publicity that Aegon holds;
- Modifications within the efficiency of Aegon’s funding portfolio and decline in rankings of Aegon’s counterparties;
- Reducing of a number of of Aegon’s debt rankings issued by acknowledged score organizations and the adversarial impression such motion might have on Aegon’s capability to boost capital and on its liquidity and monetary situation;
- Reducing of a number of of insurer monetary power rankings of Aegon’s insurance coverage subsidiaries and the adversarial impression such motion might have on the written premium, coverage retention, profitability and liquidity of its insurance coverage subsidiaries;
- The impact of the European Union’s Solvency II necessities and different rules in different jurisdictions affecting the capital Aegon is required to take care of;
- Modifications affecting rate of interest ranges and persevering with low or quickly altering rate of interest ranges;
- Modifications affecting forex trade charges, specifically the EUR/USD and EUR/GBP trade charges;
- Modifications within the availability of, and prices related to, liquidity sources reminiscent of financial institution and capital markets funding, in addition to circumstances within the credit score markets on the whole reminiscent of modifications in borrower and counterparty creditworthiness;
- Rising ranges of competitors in the US, the Netherlands, the UK and rising markets;
- Catastrophic occasions, both artifical or by nature, together with by the use of instance acts of God, acts of terrorism, acts of conflict and pandemics, may end in materials losses and considerably interrupt Aegon’s enterprise;
- The frequency and severity of insured loss occasions;
- Modifications affecting longevity, mortality, morbidity, persistence and different elements that will impression the profitability of Aegon’s insurance coverage merchandise;
- Aegon’s projected outcomes are extremely delicate to complicated mathematical fashions of economic markets, mortality, longevity, and different dynamic methods topic to shocks and unpredictable volatility. Ought to assumptions to those fashions later show incorrect, or ought to errors in these fashions escape the controls in place to detect them, future efficiency will fluctuate from projected outcomes;
- Reinsurers to whom Aegon has ceded important underwriting dangers might fail to fulfill their obligations;
- Modifications in buyer conduct and public opinion on the whole associated to, amongst different issues, the kind of merchandise Aegon sells, together with authorized, regulatory or business necessity to fulfill altering buyer expectations;
- Buyer responsiveness to each new merchandise and distribution channels;
- As Aegon’s operations assist complicated transactions and are extremely depending on the correct functioning of data know-how, operational dangers reminiscent of system disruptions or failures, safety or information privateness breaches, cyberattacks, human error, failure to safeguard personally identifiable info, modifications in operational practices or insufficient controls together with with respect to 3rd events with which we do enterprise might disrupt Aegon’s enterprise, injury its status and adversely have an effect on its outcomes of operations, monetary situation and money flows;
- The impression of acquisitions and divestitures, restructurings, product withdrawals and different uncommon objects, together with Aegon’s capability to combine acquisitions and to acquire the anticipated outcomes and synergies from acquisitions;
- Aegon’s failure to realize anticipated ranges of earnings or operational efficiencies in addition to different value saving and extra money and leverage ratio administration initiatives;
- Modifications within the insurance policies of central banks and/or governments;
- Litigation or regulatory motion that would require Aegon to pay important damages or change the best way Aegon does enterprise;
- Aggressive, authorized, regulatory, or tax modifications that have an effect on profitability, the distribution value of or demand for Aegon’s merchandise;
- Penalties of an precise or potential break-up of the European financial union in entire or partially, or the exit of the UK from the European Union and potential penalties if different European Union nations go away the European Union;
- Modifications in legal guidelines and rules, significantly these affecting Aegon’s operations’ capability to rent and retain key personnel, taxation of Aegon corporations, the merchandise Aegon sells, and the attractiveness of sure merchandise to its customers;
- Regulatory modifications referring to the pensions, funding, and insurance coverage industries within the jurisdictions by which Aegon operates;
- Commonplace setting initiatives of supranational normal setting our bodies such because the Monetary Stability Board and the Worldwide Affiliation of Insurance coverage Supervisors or modifications to such requirements that will have an effect on regional (reminiscent of EU), nationwide or US federal or state degree monetary regulation or the applying thereof to Aegon, together with the designation of Aegon by the Monetary Stability Board as a World Systemically Essential Insurer (G-SII); and
- Modifications in accounting rules and insurance policies or a change by Aegon in making use of such rules and insurance policies, voluntarily or in any other case, which can have an effect on Aegon’s reported outcomes, shareholders’ fairness or regulatory capital adequacy ranges.
This doc comprises info that qualifies, or might qualify, as inside info throughout the that means of Article 7(1) of the EU Market Abuse Regulation (596/2014). Additional particulars of potential dangers and uncertainties affecting Aegon are described in its filings with the Netherlands Authority for the Monetary Markets and the US Securities and Alternate Fee, together with the Annual Report. These forward-looking statements communicate solely as of the date of this doc. Besides as required by any relevant legislation or regulation, Aegon expressly disclaims any obligation or endeavor to launch publicly any updates or revisions to any forward-looking statements contained herein to mirror any change in Aegon’s expectations with regard thereto or any change in occasions, circumstances or circumstances on which any such assertion relies.