Vienna Insurance Group expands market leadership in CEE with acquisition of Aegon companies

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30.11.2020

Vienna (OTS) – On November 29, 2020, the Vienna Insurance Group signed the purchase agreement for the acquisition of companies from the Dutch Aegon in Hungary, Poland, Romania and Turkey. The deal includes insurance companies, pension funds, asset management and service companies with an insurance premium volume of around EUR 600 million, a managed pension fund volume of around EUR 5 billion and brings an additional customer base totaling 4.5 million customers. In Hungary, the Vienna Insurance Group will become the market leader after successfully completing the acquisition. The purchase price is 830 million euros.

“The takeover of the Central and Eastern European business of Aegon represents a big step for our group in order to sustainably consolidate our leading position in CEE and seize new opportunities. The portfolios of the companies included in the purchase agreement complement each other perfectly with our existing units and strengthen our diversification in these countries. In Hungary we make the leap to the top. As in Austria, we will be the market leader in all of our direct eastern neighbors (Czech Republic, Slovakia and Hungary). In Turkey we succeed in entering life insurance and in Poland, Romania and Hungary we can significantly expand our potential in pension fund business. With the acquisition of Aegon’s asset management company in Hungary, we are not only expanding our own asset management activities, we are also gaining valuable know-how and resources, ”said General Director Elisabeth Stadler, delighted about the successful deal with Aegon.

Occasionally: strong positioning in Hungary

With 389 million euros * generated in 2019, two thirds of the premium volume acquired was attributable to the Hungarian insurance company, which has a balanced mix of life and property insurance lines and a strong sales network, mainly through its own agents and brokers. Aegon in Hungary is currently number 3 in the property insurance market and number 7 in the life insurance market. Together with Union Biztosító, the Vienna Insurance Group can increase its current market share from 8% to over 19%. The asset management company in Hungary offers the full range of services in this business segment in the CEE region and manages assets of around EUR 1.8 billion. This makes it the fourth largest asset management company in Hungary.

Zwtl .: Entry into life insurance in Turkey

In Turkey, the deal with Aegon means the expansion of the life insurance business, where the Vienna Insurance Group has so far been represented by the property insurance company Ray Sigorta. Aegon Turkey is number 7 in the life insurance market, market leader in the range of life insurance that does not serve as credit protection and relies heavily on digital customer service. In the life insurance business, which is otherwise dominated by bank sales, sales are mainly carried out by internal and external agents. In 2019, a premium volume of 114 million euros * was recorded. The Polish company and its branch in Romania focus on brokering traditional and unit-linked life insurance. In Romania, the life insurance business is largely generated through the bank cooperation with the Romanian Banca Transilvania. The two life insurance companies in Poland and Romania earned a premium volume of 85 million euros * in 2019 (62 million euros in Poland, 23 million euros in Romania).

Occasionally: Significant expansion of the pension fund business

With the acquisition of the Aegon pension fund companies in Hungary, Poland and Romania, the Vienna Insurance Group is placing greater emphasis on old-age provision and has new additions to the pension business. Due to the demographic development and the associated difficult financing of state pension systems, great growth opportunities for pension provision are seen in these markets. In Poland in particular, where pension funds for employees will be introduced as part of the 2019 pension reform, expanded potential and synergies to the VIG Group’s previous involvement in this area can be used. All three pension fund companies are among the top 4 in their respective countries. Total assets of EUR 4.9 billion are managed.

May: Closing expected for the 2nd half of 2021

The transaction is subject to the required regulatory and competition approvals. The formal completion of the acquisition of the Aegon companies is expected in the second half of 2021. In 2019, the companies to be acquired generated a net profit of around EUR 50 million with around 1,650 employees.

* Awards based on the exchange rate at the end of 2019



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The Vienna Insurance Group (VIG) is active in 25 countries with around 50 group companies and over 24,000 employees. VIG has been listed on the Vienna Stock Exchange since 1994 and is now one of the top companies in the “prime market” segment and has an attractive dividend policy.

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