a.s.r. to take over Aegon’s Dutch businesses in €4.9 billion deal
The third largest Dutch insurance provider, a.s.r., will take over the Netherlands operations of Dutch multinational insurer Aegon. The two companies confirmed the 4.9 billion euro deal in statements released on Thursday morning. Some jobs could be lost as a result of the deal.
Terms of the deal call for a.s.r. to provide cash considerations of 2.5 billion euros from its surplus capital. The company will also issue new ordinary shares to Aegon, giving the multinational’s shareholders a 29.99 percent stake in a.s.r.
The deal should place a.s.r. as the top insurance provider for pensions, and second overall for life insurance. Once Aegon’s Dutch operations are absorbed over the next three years, a.s.r. will represent 6.5 million customers in the Netherlands, estimated broadcaster NOS. The company will then employ approximately 6,700 people. The a.s.r. brand will lead, with the Aegon brand used for pension and mortgage products for the next three years, and no changes are in store for the branding of other Aegon businesses, like Knab, TKP, Robidus and Nedasco.
“Combining Aegon Nederland’s business on our platform will reinforce our strengths in the Dutch market, significantly enhance our strategic positioning across both Life and Non-Life and improve our distribution and services capabilities,” said a.s.r. CEO Jos Baeten. “Given the joint strength of both companies in the Dutch market, the enlarged a.s.r. will prove to be a good home for all customers of Aegon Nederland.”
Aegon acknowledged that the deal will have an impact on current employees at both organizations. It said the goal was to “minimize the number of redundancies through natural attrition and by helping people to the greatest extent possible to find jobs either inside or outside of the combination. The process will be executed in a fair, diligent, and open way, respecting the talents and strengths of people in both organizations.”
At the same time, employees who remain should be able to take advantage of a wider selection of long-term career paths. The new a.s.r. should be more diverse, and not only larger, Aegon said.
“We will continue to pursue profitable, long-term growth. As one of the leading insurers in sustainability, we remain committed to value creation for all our stakeholders: our customers, our employees, our shareholders, our investors and society at large,” Baeten stated.