The listed company announced this in a broadcast on Sunday morning. The purchase price amounts to 830 million euros, the closing of the transaction is expected in the second half of 2021.
Aegon’s insurance business in Hungary, Poland, Romania and Turkey is acquired. In these countries, VIG is taking over the insurance companies in the non-life and life sectors, as well as pension funds, asset management and service companies from Aegon. The purchase is subject to the necessary regulatory and competition approvals.
“With the acquisition of these companies, VIG is expanding its leading market position in Central and Eastern Europe and is becoming number 1 in the insurance market in Hungary,” the broadcast said. In addition, VIG is expanding its area of activity in this region in the pension fund business and will also be active in the life business in Turkey for the first time.
The premium volume of the insurance companies in the four countries amounted to the equivalent of around EUR 600 million in 2019, with a net result of around EUR 50 million. From today’s perspective, VIG assumes that the regulatory solvency ratio at closing will be within the communicated comfort zone of 170 to 230 percent.
VIG reported its nine-month results on Thursday (November 26): It had made significantly less profit in the first three quarters due to the corona crisis. The main reasons for this were a declining financial result and goodwill amortization for Bulgaria, Croatia and Georgia that had already been made in the first half of the year. As announced in mid-November, earnings before taxes fell by 29.2 percent to EUR 266.3 million. The expected decline in earnings for the full year was also confirmed.
In Viennese trading, the VIG share temporarily gained 3.36 percent to EUR 20.30.
Bildquelle: Vienna Insurance Group/Robert Newald,Vienna Insurance Group / Robert Newald