VIG wraps up Aegon deal in Hungary

March 24, 2022 – The takeover of Aegon companies in several countries by VIG stalled in 2021: In Hungary, stumbling blocks had to be cleared. Apparently that has now happened. As VIG reports, the acquisition in Hungary is dry. The participation of the Hungarian state holding Corvinus should then take place on Friday of this week.

In autumn 2020 the Vienna Insurance Group AG Vienna Insurance Group (VIG) reached an agreement with Dutch Aegon NV to acquire its life and non-life insurance businesses in Hungary, Poland, Romania and Turkey.

The business, valued at 830 million euros, also includes pension funds, asset management and service companies (VersicherungsJournal 30.11.2020). The takeover encountered obstacles in Hungary (VersicherungsJournal 8.4.2021, 16.8.2021, 22.9.2021, 10.1.2022, 18.2.2022, 22.2.2022).

Apparently, these have now finally been cleared out of the way: On Wednesday, VIG announced that it had received approval for the acquisition from the Hungarian authorities on March 17 and 18, 2022.

With the Hungarian part of the Aegon transaction, they can now “successfully complete most of the planned acquisition of the entire Aegon Eastern European business”.

Approval of the Hungarian authorities

“On March 23, 2022, Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) will acquire the business of the Dutch company Aegon in Hungary, following the approval of the local Hungarian authorities,” VIG continues in the press release.

The closing includes the purchase of the two Dutch holding companies Aegon Hungary Holding BV and Aegon Hungary Holding II BV, which hold 100 percent of the shares in the Hungarian Aegon companies.

The closing of the Hungarian state holding Corvinus’ 45 percent stake in VIG’s Hungarian business – which will be managed by the holding company VIG Hungary Investment Company in the future – is scheduled for March 25, 2022. VIG will retain the controlling majority and operational management of the Hungarian company, she adds.

Largest market player in Hungary

According to VIG information, the Aegon premium volume in Hungary amounted to 401 million euros according to preliminary figures in 2021, with profit before taxes of 51 million euros. Around 1,000 employees look after more than 1.5 million insurance customers.

Together with the already existing VIG insurance company Union – the group has been active in Hungary for 26 years – the group has risen to become the market leader in Hungary with a market share of over 19 percent.

The new acquisitions are an enrichment for the “broad diversification” of VIG, says CEO Elisabeth Stadler. They offer the group “new opportunities in asset management and in the pension fund business,” two business areas “that we want to intensify and expand as part of our ongoing VIG 25 strategy program.”

According to VIG, all approvals have been applied for the acquisition of Aegon’s remaining Eastern European business with companies in Poland, Romania and Turkey. The approval of the local authorities is still pending.

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