THE HAGUE, 17-May-2019 — /EuropaWire/ — Aegon‘s partner in the variable annuity joint ventures in Japan Sony Life takes over its 50% stake. The transaction is for approximately EUR 130 million (JPY 16 billion).
Commenting on the acquisition, Alex Wynaendts, CEO of Aegon, said:
“With the evolving market conditions, we mutually agreed that the future of the variable annuity business in Japan is best served as a wholly-owned part of our longstanding partner Sony Life. I am confident that this change is in the best interest of all stakeholders. This divestment allows Aegon to fully focus on its most promising businesses in Asia serving the fastest growing customer segments and offering the most significant opportunities.”
Aegon intends to focus on driving profitable sales growth and sustainably growing capital generation and the current divestment is in line with this strategy. The deal is not expected to have a material impact on Aegon’s capital position and is anticipated to lead to an IFRS gain of approximately EUR 50 million, which will be reported in “Other income” at the time of closing. The cash proceeds, following the successful completion of the deal will be upstreamed to the group.
Further details of the divestment are currently under finalization procedures and the deal itself is subject to normal regulatory approvals for transactions of that type. The deal is expected to complete by the end of the year (2019). Aegon will continue supporting the operations with certain hedging, consulting and administrative activities during the transition period.
Once the full transaction agreements are signed, further details will be revealed and an update will be made.
Asia will remain in the focus of Aegon and the company will be committed to the fast-growing customer segments there. The universal life insurance and protection products are the core products in the region. Universal life insurance products are mainly offered through the High Net Worth segment via Transamerica Life Bermuda, which keeps on expanding geographically. Direct-to-consumer channels and digital distribution platforms are used for the sales of the protection products in the joint ventures. In China in particular, Aegon is committed to a protection led strategy focused on critical illness and whole life products which enables the joint venture to grow sales in the last five years. Other Asian markets are also of particular interest to Aegon where it also invests in digital distribution platforms. Aegon Industrial Fund Management Company, which is its Chinese asset manager joint venture, is a cornerstone of the growth strategy of Aegon Asset Management.
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