Dutch insurer Aegon to sell Romanian subsidiary under regional deal

Dutch insurance company Aegon has put up for sale its business in Eastern Europe, including Romania.

The group aims to raise cash to better cope with the negative effects of the coronavirus pandemic (Covid-19) and increase profits in its core markets, sources familiar with the deal told Reuters, Economica.net reported.

In this transaction, Aegon is collaborating with the American investment bank JPMorgan and has already held preliminary discussions with companies in the industry to sell the subsidiary, which is mainly focused on Hungary but is also active in Poland, Romania, and Turkey, the sources explained. They estimate that the transaction could be valued at about EUR 650 million.

Insurance companies NN Group (Netherlands) and KBC (Belgium) are considering submitting bids for these assets, while German group Allianz has also expressed interest, sources said.

Aegon's business in Romania amounted to about EUR 25 mln in 2019, up by 25% compared to 2018, according to the local media.

(Photo source: Facebook/Aegon)