Aegon has agreed to sell its life insurance business in the Czech Republic and life insurance and pension businesses in Slovakia to Dutch insurer NN Group for a total of €155m.
For Aegon, the transaction is in line with its strategic objective to streamline its portfolio and capital allocation throughout its businesses.
Aegon’s businesses in the two European countries mainly offer unit-linked products apart from term life products and a variety of riders. In Slovakia, Aegon also offers pension services.
Last year, the underlying earnings before tax of the combined operations in Czech Republic and Slovakia amounted to €16m, said the company.
Aegon CEO Alex Wynaendts said: “This divestment is a further step in rationalizing our geographical footprint and focusing our resources on our key markets.
“The transaction guarantees continued customer service, offers new opportunities for employees, and is in the best interest of our shareholders.”
For NN Group, the acquisition of the Aegon businesses aligns with its strategy for profitable growth and value creation.
The Dutch insurer said that the bolt-on acquisition will consolidate its position in the life insurance market and its distribution network in the Czech Republic and Slovakia. Furthermore, the deal will bolster its position in the Slovakian pension market, said NN Group.
NN Group CEO Lard Friese said: “In line with our strategy, we consider this a good opportunity to increase our presence in two attractive markets.”
The transaction is anticipated to be completed by the end of the first quarter of 2019, should it get the required regulatory approvals.
Earlier this month, Aegon announced a deal to offload the last substantial block of its US life reinsurance business to SCOR Global Life, a life reinsurance provider in France.
Under the terms of the transaction, Aegon’s Transamerica life subsidiaries will reinsure about $700m of liabilities through SCOR Global Life.
In July, Aegon made a deal to acquire a stake of 95% in Dutch income protection service provider Robidus from Avedon Capital Partners for an undisclosed price.