Aegon has agreed to sell Unirobe Meeùs Groep (UMG), an independent financial advisory group, to Aon Groep Nederland for EUR 295 million.
The transaction is consistent with Aegon's strategic objective to optimize its portfolio across its businesses.
The transaction is expected to result in an increase of Solvency II capital of approximately EUR 225 million, which will be retained in Aegon the Netherlands. This will improve the Solvency II ratio of Aegon the Netherlands by an estimated 6%-points.
"I am delighted that we have found a new strong owner with an international footprint for UMG's customers and staff," said Alex Wynaendts, CEO of Aegon. "This transaction should be seen in the context of the evolving insurance landscape in the Netherlands and our strategy to optimize our portfolio."
"Through this divestment, we increase our financial flexibility and it allows us to focus on those businesses that are core to our strategy. I would like to thank UMG's employees and management for their many contributions."
Book gain of approximately EUR 180 million
The divestment will lead to a book gain of approximately EUR 180 million, which will be reported in Other income at the time of closing. As a consequence of this transaction, annual underlying earnings before tax will decrease by approximately EUR 20 million going forward.
The transaction is subject to works council advice and normal regulatory approvals and is expected to close in the fourth quarter of 2017.
UMG provides independent advice and insurance products to approximately 580,000 retail and 75,000 wholesale customers and is a top-3 independent financial advisory group in the Netherlands. Aegon and UMG did not have production agreements: independent advice has always been the number one priority.