November 30 (SeeNews) - Austria's Vienna Insurance Group (VIG) said on Monday it has signed a deal to buy the units of Dutch peer Aegon in Romania, Turkey, Hungary and Poland for 830 million euro ($994.3 million).
The transaction will encompass Aegon's insurance companies, pension funds, asset management and service companies in the four countries, VIG said in a statement.
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The target companies serve a total of 4.5 million customers and have total premiums of around 600 million euro and a managed pension fund volume of around 5 billion euro. The firms generated a net profit of around 50 million euro and employed 1,650 people in 2019.
The deal will mark VIG's entry into the life insurance segment in Turkey, where it currently operates only through non-life insurer Ray Sigorta. Total premiums of the Aegon's Turkish unit came in at 114 million euro in 2019.
In Romania, VIG is acquiring a business that provides traditional and unit-linked life insurance policies. The Romanian insurer generated a premium volume of 23 million euro in 2019.
The acquisition, subject to regulatory and antitrust approvals, is expected to be completed in the second half of 2021.
Elsewhere in Southeast Europe, VIG operates in Serbia, Moldova, Bulgaria, Albania, Kosovo, North Macedonia, Bosnia and Croatia.
($ = 0.8347 euro)