Dutch insurance giant Aegon sells off British division in £2 billion deal

Aegon is offloading its UK business to rival Standard Life in a transaction valued at 2 billion pounds, or about 2.3 billion euros. The insurer is sharpening its strategic focus on the United States, its key growth market. The move follows an earlier divestment of its Dutch insurance arm to a.s.r.

The company said the transaction marks the conclusion of a strategic review of Aegon UK. As part of the deal, Aegon will receive 750 million pounds in cash as well as a 15.3% shareholding in Standard Life. The sale is scheduled to close by the end of the year, while Aegon’s asset management business remains outside the scope of the agreement.

“This transaction represents an important step in our ambition to become a leading life insurance and pension group in the US,” said Lard Friese, chief executive of Aegon. According to him, Standard Life is the right owner for Aegon UK and “a good home” for its employees.

Aegon announced in December that it plans to relocate both its headquarters and legal domicile to the United States. Once the transition is completed, no later than 1 January 2028, the group will operate under the name Transamerica Inc., its largest subsidiary.

Following the earlier sale of its Dutch business to a.s.r., the company shifted its legal registration to Bermuda in 2023. While its headquarters initially remained in the Netherlands, it was later moved from The Hague to Schiphol Airport.

Bloomberg reports that Standard Life emerged as the winner of the bidding process for Aegon UK, beating rival bidders including Lloyds Banking Group and Royal London. The UK unit reportedly serves more than 3.5 million customers, according to Bloomberg.