Aegon, a Netherlands-headquartered multinational life insurance, pensions and asset management company, has announced the successful completion of its merger with a.s.r., a prominent Dutch insurance company.
This strategic combination brings together Aegon’s extensive portfolio, including pension, life and non-life insurance, banking, and mortgage origination activities, with a.s.r.’s established presence in the Dutch market.
Under the terms of the transaction, Aegon received EUR 2.2 billion in cash proceeds and a 29.99% stake in a.s.r.
The completion of this deal not only positions Aegon as the second-largest insurance company in the Netherlands but also strengthens its scale and market share across various industry segments.
Lard Friese, CEO of Aegon, expressed his enthusiasm for this milestone achievement, stating, “The completion of this transaction marks a major milestone in Aegon’s history and in our long-term ambition to create leaders in investments, protection, and retirement solutions. The combination creates the number two insurance company in the Netherlands, with significant scale across different segments, benefiting all our stakeholders. ”
Friese also extended his gratitude to the dedicated Aegon employees who will now transition to a.s.r., acknowledging their significant contributions over the years. He wished them success in their future endeavours.
As part of the agreement, a relationship agreement between Aegon and a.s.r. has been slightly amended. The revised terms now stipulate that unanimous approval from a.s.r.’s Supervisory Board is required for two matters: CEO succession in the event the current CEO of a.s.r. steps down before the end of his current term, and material decisions on capital management that could result in a change in the risk profile.
However, the remainder of the relationship agreement remains unchanged. This includes affirmative votes on significant changes to a.s.r.’s dividend policy, certain dilutive transactions, and certain M&A transactions.
The completion of this transaction will lead to a substantial increase in Aegon’s Cash Capital at the Holding. In line with previous indications, Aegon plans to initiate a EUR 1.5 billion share buyback program over a 12-month period in the near future.
In January 2023, Aegon had announced that its shareholders have approved a move to combine certain of its Dutch businesses with insurer a.s.r. It followed an October 2022 announcement that Aegon had reached a deal with a.s.r. that aims to create a leading player in the Dutch market.
