Insurance giant Aegon has completed the divestment of its Hungarian businesses to Vienna Insurance Group (VIG).
The gross proceeds of the transaction amount to €620m (£517m, $681m).
The completion of the deal is an important step towards the full closing of the sale of Aegon’s insurance, pension, and asset management businesses in central and eastern Europe to VIG for €830m, as announced in November 2020.
The sales of Aegon’s businesses in Poland, Romania and Turkey are expected to complete in the course of 2022, subject to local regulatory approvals.
Lard Friese, Aegon chief executive, said: “[The] announcement marks an important step in the transformation of Aegon as we narrow our strategic focus to select core and growth markets, and further strengthen our balance sheet. I would like to sincerely thank our employees in Hungary for their significant contribution to Aegon over the years.”
Blocked
In September 2021, International Adviser reported that the acquisition of Aegon’s Hungarian business hit a stumbling block in the Budapest metropolitan court.
The deal was first blocked by Hungary’s ministry of interior in April 2021, a decision that was challenged in the country’s court by both Aegon and VIG the following month.
On 20 September 2021, the tribunal sided against them. The two insurers appealed before the Hungarian supreme court.
The firms won their case and the deal was allowed to go ahead.
But this was dependent on VIG selling 45% of its current Hungarian business to state holding company Corvinus for an undisclosed sum.
