Aegon announces its acquisition of Fidem Life, the fifth largest life insurance company in Ukraine, further strengthening Aegon’s position in the developing Central and Eastern European market.
Aegon has been active in the region since 1992 and currently has operations in Hungary, Poland, the Czech Republic, Slovakia, Romania and Turkey.
Under the terms of the acquisition, Aegon will acquire 100% of Fidem Life from local private equity company Horizon Capital. The transaction is expected to close in the first quarter of 2013, pending regulatory approval. Fidem Life will be rebranded "Aegon Ukraine" and will be integrated into the governance and management structure of Aegon CEE. The initial focus of Aegon Ukraine will be to grow its life insurance operations, and further develop its agency network.
Gábor Kepecs, CEO of Aegon CEE and a Member of Aegon's Management Board, said: "Given the sizeable population and low penetration of life insurance in the country, Ukraine offers Aegon an attractive long-term growth opportunity. Ukraine has a developing middle class that will increasingly require the essential products and services we provide. Consequently, we intend to fully leverage our broad capabilities as a leading provider of life insurance across the Central and Eastern European region to provide quality and reliable solutions to meet these emerging needs. Fidem Life's dedicated customer centric business approach fits well with Aegon's strategy."