Life insurance and pensions provider Aegon has entered into an agreement with Ergo Hestia to purchase all of the shares of its Polish pension fund management company PTE Ergo Hestia SA.
As of October 31, 2006, PTE Ergo Hestia managed E658 million in assets, and had 372,796 members. Following the acquisition, the company will be renamed PTE Aegon Poland.
The purchase is expected to strengthen Aegon’s overall presence in the Polish financial services market after the company acquired a life insurance company there in October 2005.
This acquisition builds on our strategy of further developing our presence in central and eastern Europe (CEE), said Dr Gabor Kepecs, CEO of Aegon CEE. With the addition of PTE Aegon Poland, Aegon now manages the accounts of around 1.2 million pension customers throughout the CEE region. This is an excellent position from which we can continue our growth in these key markets.
The acquisition is subject to approval by the Polish Financial Supervision Commission and antitrust authorities, but is expected to be completed in early 2007.
Aegon and Ergo Hestia have also entered into a cooperation agreement under which Aegon will use its tied agency network to distribute the non-life products of STU Ergo Hestia SA and Ergo Hestia will sell mandatory pensions on behalf of PTE Aegon Poland.