Aegon, a provider of life insurance, pensions and asset management, is considering a sale of its Eastern European business, according to reports from Reuters.
Sources say the company is working with JP Morgan on the process and has already entered talks with potential buyers.
The reasoning behind a sale would be to raise funds to help Aegon deal with the impact of COVID and boost earnings in its core markets, Reuters was told.
Aegon’s Eastern European arm is mostly focused on Hungary but is also active in Poland, Romani and Turkey.
It’s thought that a sale could fetch up to €650 million for Aegon, who has already received interest from NN Group, KBC and Allianz, amongst others.
The Dutch insurer previously offloaded its operations in the Czech Republic and Slovakia to NN Group for €155 million in 2018, and Chief Executive Lard Friese said back in August that he would be reviewing Aegon’s business in other markets.
Earlier this month, the company confirmed the sale of Stonebridge, its UK provider of accident insurance products, to Global Premium Holdings for £60 million.
The move came after Aegon reported a 31% decline in earnings over H1 2020, largely due to low interest rates and unfavourable mortality, driven by the COVID-19 pandemic.