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August 16, 2018 12:00 am | FILED UNDER: business

Aegon Selling Czech And Slovak Companies For Kc4 Billion

By ČTK

Prague, Aug 16 (CTK) – Dutch insurer Aegon has agreed to sell its companies in the Czech Republic and Slovakia for EUR155m (about Kc4bn) to Dutch group NN, the group said on its website today.

 

“This divestment is a further step in rationalizing our geographical footprint and focusing our resources on our key markets”, CEO Alex Wynaendts said.

 

“The transaction guarantees continued customer service, offers new opportunities for employees, and is in the best interest of our shareholders,” he added.

 

According to the company, the transaction will not mean any change for its clients, as prices and conditions of products will remain the same.

 

The deal is subject to usual regulatory approvals and is expected to be closed during the first quarter of 2019.

 

“In comparison with NN, Aegon ranked among innovators on the Czech insurance market, so it is a question whether the strong product development will continue,” Partners product manager Martin Svec said.

 

The impact on clients is hard to estimate. “Both companies will now have a lot of work, which will certainly slow their other projects. In a long run, it will be mainly NN who will benefit from the deal provided that it adopts the ‘drive’ in product development and technologies,” Svec said.

 

Company Digital Investments CEE, owned by the Aegon group, remains a shareholder of the ChytryHonza.cz company. This relationship has no connection with insurance activities on the Czech market.

 

“From the business viewpoint, nothing is changing for us. We will continue our current projects on the product basis and cooperate with the new owner, NN,” said ChytryHonza.cz executive director Nicholas Eich.

 

In the Czech Republic and Slovakia, Aegon provides mainly investment life insurance and risk life insurance. In Slovakia, it also offers pension products.

 

The company launched business in the Czech Republic in April 2005.

 

Last year, Aegon’s pre-tax profit in the Czech Republic and Slovakia amounted to about Kc412m.

 

NN operates in the Czech Republic via insurance company NN Zivotni pojistovna and pension company NN Penzijni spolecnost, among others.

 

NN Zivotni pojistovna has been operating on the Czech market since 1992, when it started to offer life insurance under the name Nationale-Nederlanden as the first foreign insurer.

 

In 1995, NN Penzijni spolecnost was one of the first companies to start offering private pension savings in the Czech Republic.

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