Aegon sells UK-based Stonebridge in £60m deal

Dutch insurance group Aegon is selling Stonebridge, a UK-based provider of accident insurance products, to London-based Global Premium Holdings for roughly £60 million.

Stonebridge is a direct to consumer insurer specialising in accidental death and hospitalisation products that provides policies to around 200,000 customers across the UK, Germany, France, Spain, Italy, the Nordics and Ireland. Since 2014, Stonebridge has been closed for new business.

The acquirer, Global Premium, part of Embignell group, provides a range of accident and sickness insurance policies.

The net proceeds of £60 million are said to be equal to one times Stonebridge’s Solvency II Own Funds at year-end 2019, and that the transaction is not expected to have a material impact on Aegon's capital position and results.

Aegon said the transaction will further simplify its business profile, without impacting its core business in the UK, where it focuses on the provision of pensions, investment and protection services provided via intermediaries including employers and financial advisers.

The net proceeds consist of the purchase price and dividends related to the transaction, and exclude a contingent consideration of up to £10 million. The transaction is subject to normal regulatory approvals, which is expected to be completed before the end of 2020.