Aegon expands Latin American presence through joint venture with Brazilian life insurer
Aegon has signed an agreement to acquire a 50% interest in Mongeral SA Seguros e Previdência, Brazil’s sixth largest independent life insurer.[node:field_featured_media:entity:field_media_image]
This strategic joint venture will strengthen Aegon’s presence in Latin America, identified by the Group as a strategic market given its potential for growth.
Mongeral specializes in individual and group life insurance as well as pension and savings products and is Brazil’s leading distributor of worksite and labor union pension plans. Aegon’s partnership with Mongeral is part of a broader strategy designed to expand the Group’s international presence and target more of its financial resources toward businesses that offer attractive growth and higher returns.
“We’re delighted with this opportunity to partner with one of Brazil’s leading life insurance and pension providers,” said Aegon CEO Alex Wynaendts. “Brazil is the largest market for life insurance in Latin America. This step strengthens our position in this growth region and enables us to extend Aegon’s financial strength and expertise for the benefit of a broad customer base.”
In recent years, Aegon has sought to expand its presence in Latin America. In 2006, the Group signed a joint venture agreement with Seguros Argos, one of Mexico’s leading independent providers of life insurance. This latest joint venture will complement Aegon’s existing operations in Brazil, which include Aegon Direct Marketing Services and its life reinsurer, Transamerica Reinsurance.
Formed in 1835, Mongeral is Brazil’s oldest life insurance company. It has 44 offices across the country and distributes products through more than 3,000 registered brokers, serving some 350,000 customers. In 2007, Mongeral had total revenues of approximately EUR 121 million.
“This is an exciting step for us,” said Mongeral CEO Helder Molina. “Aegon will provide additional strength and expertise that we can use to further develop our business in Brazil. Together, we will continue to offer innovative, quality products that help our customers manage their financial resources over the long term.”
The transaction is expected to close by the end of the first quarter of 2009, subject to approval from Brazil’s regulatory authorities.
Formed in 1835, Mongeral is one of the five oldest companies in Brazil and a pioneer in the life insurance and pension plan market in Brazil. With more than 170 years of uninterrupted business, Mongeral was recognized by the government as the first social security initiative in Brazil. Today Mongeral has more than 500 employees, 3,000 brokers and 44 branches throughout Brazil. The company stands out in the life insurance and pensions market due to its core values: excellence, transparency, valorization of employees, social responsibility and innovation.