New life sales increased 36% to €677m with strong performances in the UK, Netherlands and the US. The company said the numbers were helped by a strong market proposition and the introduction of the Retail Distribution Review in the UK.
In the Americas, the main drivers behind the increase were continued successful sales of indexed universal life products and the closing of certain unprofitable universal life products which resulted in higher activity.
Aegon said it would maintain a long-term commitment to Spain and had recently reinforced its market position with a 25-year strategic partnership with Banco Santander, Spain’s largest financial group, to distribute life and general insurance products through its network of more than 4,600 bank branches.
The long-term alliance provides access to a potential client base of 12 million people across the country. Under the terms of the agreement, Aegon will acquire a 51% stake in a life insurance company and in a non-life insurance company for €220 million. Aegon may pay an additional amount after five years depending on the performance of the partnership. Aegon Spain will provide the back-office services for the joint venture companies.
In central and eastern Europe, Aegon announced two transactions to develop its position in the region. In December 2012, Aegon acquired Fidem Life, the fifth-largest life insurance company in Ukraine. The transaction was closed on 8 February.
Last month, Aegon bought Eureko’s life insurance and pension business in Romania and integrated it within Aegon’s existing operations. Following the transaction, Aegon will become the country’s third-largest pension provider and a top 10 provider of life insurance products. The transaction is expected to close in the second half of 2013, pending regulatory approval.
Aegon has been active in central and eastern Europe since 1992 and now has operations in Hungary, Poland, the Czech Republic, Slovakia, Romania, Turkey and the Ukraine.
