The acquisition is subject to approval by the Polish Financial Supervision Commission and anti-trust authorities. The acquisition is expected to be completed in early 2007.
Don Shepard, Chairman of Aegon's Executive Board stated: "We look forward to leveraging Aegon's international pension expertise to serve the growing retirement needs of the Polish market and welcome this opportunity to add the pension activities of PTE Ergo Hestia to the life business of Aegon Poland.
The Central and Eastern Europe region continues to be a key market for Aegon and our recent business development activities demonstrate our long-term commitment to the area.”
As of October 31, 2006, PTE Ergo Hestia managed PLN 2.5 billion (EUR 658 million) in assets with 372,796 members. Following the acquisition, the company will be renamed PTE Aegon Poland.
This acquisition will strengthen Aegon’s overall presence in the Polish financial services market. Aegon acquired a life insurance company there in October 2005, which is the fourth-largest life insurer in Poland based on gross written premiums*.
“This acquisition builds on our strategy of further developing our presence in Central and Eastern Europe,” says Dr. Gábor Kepecs, CEO of Aegon Central and Eastern Europe. “With the addition of PTE Aegon Poland, Aegon now manages the accounts of around 1.2 million pension customers throughout the CEE region. This is an excellent position from which we can continue our growth in these key markets.”
Non-life distribution agreement
Aegon and Ergo Hestia have also entered into a cooperation agreement by which Aegon will use its tied agency network to distribute the non-life products of STU Ergo Hestia S.A. and Ergo Hestia will sell mandatory pensions on behalf of PTE Aegon Poland.
“The addition of a mandatory pension business provides a valuable opportunity to broaden our overall product platform and leverage our strong distribution partnerships”, says Michal Biedzki, CEO of Aegon Poland. “And the addition of Ergo Hestia as a strategic partner adds tremendous value, as it allows Aegon Poland to remain focused on its core business of life insurance and pensions while providing access to high-quality non-life insurance products for our agents and clients.”