Aegon has finalized the acquisition of the Turkish life insurance and pension provider Ankara Emeklilik. The acquisition is part of a broader objective to expand Aegon’s presence in Central & Eastern Europe.
Aegon agreed to buy Ankara Emeklilik in February of this year.
“In June, when we presented our new Group strategy, we said we wanted to build scale in emerging markets like Central & Eastern Europe – markets that offer sustainable, profitable growth in the years ahead. The acquisition of Ankara Emeklilik is very much part of this strategy,” said Gábor Kepecs, the member of Aegon’s Management Board responsible for Central & Eastern Europe.
The acquisition marks Aegon’s first step in the rapidly-growing Turkish life insurance and pension market. It also complements recent expansion in the Group’s businesses in Central & Eastern Europe. With this latest acquisition, Aegon has operations in six countries in the region: Hungary, Poland, Slovakia, the Czech Republic, Romania and Turkey.
In addition, the acquisition will give Aegon a strong platform for further growth in Turkey. Ankara Emeklilik already has a well-established position in the Turkish market with over 58,000 pension fund members and approximately EUR 35 million in assets under management.
With the acquisition finalized, Aegon has appointed Uğur Tozşekerli, former Assistant General Manager of Yapı Kredi Emeklilik as CEO designate1) of Ankara Emeklilik. Uğur Tozşekerli said: “I’m very excited to be leading this company. The Turkish market has enormous potential for growth. We are a country of 74 million people, more than either the United Kingdom or France. Yet, proportionally, we spend far less on life insurance or pensions. That is now changing and with Aegon’s financial strength and expertise, we’re well placed to increase our share of an expanding market.”
Last month, as part of the Group’s new strategy, ‘Unlocking the Global Potential’, Aegon set out an ambitious growth plan for its businesses in Central & Eastern Europe, based on:
o Broadening its product and distribution range; o Achieving a top-five position in each of its markets in the region; o Pursuing add-on acquisitions and selective entry into new markets.
Aegon’s aim is to achieve a 10% share of the mandatory pension market in Central & Eastern Europe by 2010, increasing its total number of pension fund members in the region to 2.3 million, up from approximately two million2) at present.
1) Appointment is subject to regulatory approval. 2) This number includes the members of the open pension fund Skarbiec-Emerytura in Poland. It is expected that Aegon will be able to fully take into account these members in Q4 2008.