Reinsurance News

Aegon business sale blocked in Hungary

7th April 2021 - Author: Matt Sheehan

Hungarian regulators have refused to give approval to the previously announced sale of Aegon’s Central and Eastern European operations to Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG).

Under the €830 million deal, VIG had agreed to acquire Aegon’s insurance, pension, and asset management business in Hungary, Poland, Romania, and Turkey.

But VIG recently received a decree from the Hungarian Ministry of the Interior which stated that the intended acquisition by a foreign investor of the Aegon companies in Hungary is denied.

The company acknowledged that its acquisition of the Aegon entities had been “prevented by Hungary for the moment,” but said it hopes to resolve the issue soon.

“As part of the approval process, Vienna Insurance Group has been in constructive talks with the responsible Hungarian Minister of Finance since January 2021,” VIG reported.

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“The decree is in contradiction with the course of the talks to date. Vienna Insurance Group expects that this issue will be resolved positively in the near future.”

Aegon is also expected to continue to work with VIG to close the transaction.

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