Life reinsurer, Reinsurance Group of America, Incorporated (RGA) has reached an agreement to sell its Dutch life insurance firm, Leidsche Verzekering Maatschappij N.V. (Leidsche), to De Goudse N.V., an all-round insurer.
Terms of the transaction have not been disclosed and the deal remains subject to approval of the Competition Authority, De Nederlandsche Bank and the Bermuda Monetary Authority, and also to the completion of the advice procedure with the works council of De Goudse.
Founded in 1924, De Goudse has a strong entrepreneurial focus, and has a specialist focus in insurance solutions for businesses as well as life, expat, and also travel insurance.
Johan Tuijp, Managing Director, Netherlands and Nordics, RGA, commented: “RGA remains highly committed to serving its clients in its reinsurance business in the Netherlands. We believe the sale of Leidsche supports their long-term growth strategy in the protection market, which could not be supported directly under RGA ownership, and we are confident De Goudse is aligned with Leidsche’s vision and will be an excellent new home for the policyholders and employees of Leidsche.”
Olav Cuiper, Executive Vice President (EVP), EMEA Markets at RGA, said: “We initiated the sale process in a pre-COVID-19 environment, and even during these unprecedented times we were able to achieve an optimal transaction outcome. We are immensely proud of the team who supported the deal and we believe our longstanding relationship with De Goudse was a key to making this process as smooth and efficient as possible.”
Emendo Capital acted as financial advisor and Allen & Overy as legal advisor to RGA on the deal, and Aperghis & Co acted as financial advisor and NautaDutilh as legal advisor to De Goudse.
Geert Bouwmeester, Chief Executive Officer (CEO) of De Goudse, said: “For many years, life insurance has been one of the most important pillars of De Goudse. In 2018, our company introduced its ‘New-life’ strategy, which encompasses a focus on new product development and production as well as the acquisition of life portfolios and companies that fit in with the strategy of De Goudse. At the end of 2019, we acquired a portfolio from BNP Cardif.”
Robbert Prins, De Goudse Board Member, added: “The acquisition of Leidsche and the subsequent combining of our life businesses is a significant step in the realization of our ‘New-life’ strategy. Acquiring Leidsche will help us execute on our new business ambitions given Leidsche’s position in term life and annuities. In addition, we see a strong cultural fit between our companies and are very happy to combine the strengths of both our companies.”
