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Aegon agrees on 50% stake in Brazil life insurer

Rio de Janeiro, Brazil , October 1, 2008

Aegon has signed an agreement to acquire a 50% stake in Mongeral SA Seguros e Prevedência, Brazil’s sixth largest independent life insurer.

 

 

CEO Alex Wynaendts said the move would “strengthen Aegon’s position” in Latin America – a key growth market for the Group.

Mongeral specializes in individual and group life insurance, as well as pensions and savings. The company is also Brazil’s leading distributor of worksite and labor union pension plans.

In recent years, Aegon has been looking to expand its presence in Latin America. In 2006, the Group signed a joint venture agreement with Seguros Argos, one of Mexico’s leading providers of life insurance.

In addition, two Aegon companies – Aegon Direct Marketing Services and Transamerica Reinsurance – already have businesses in Brazil.

This latest partnership with Mongeral is part of a broader strategy designed to expand Aegon’s international presence and direct more of its financial resources to areas where there is strong growth and high returns. Aegon had already identified Latin America as an area where the Group would like to expand its presence.

Mongeral CEO Helder Molina said the partnership with Aegon would provide “additional strength and expertise that we can use to further develop our business in Brazil”.

Formed in 1835, Mongeral is Brazil’s oldest life insurance company. It has 44 offices, serving some 350,000 customers across the country. In 2007, Mongeral had revenues of approximately EUR 121 million.

Brazil is home to almost 190 million people, making it Latin America’s most populous nation. Sales of life insurance per capita are still very low compared to more developed markets in Western Europe and North America, but have been climbing – the result of recent political reform and continued economic growth.