VIG eyes green light on Aegon-Hungary deal after agreeing to co-ownership

Vienna Insurance Group (VIG) has struck preliminary terms on a deal with the Hungarian government for the co-ownership of  Aegon and Union assets in Hungary. The agreement would potentially clear the way for VIG to finalize its acquisition of Aegon’s assets in Central Europe.

The deal will give the Hungarian government a 45 percent stake in the Hungarian Aegon companies and Union Vienna Insurance Group Biztosító, leaving the majority stake and operational control to VIG.

" VIG welcomes the future cooperation with Hungary," the company said in a statement.

Further negotiations are required to set participation and governance structure, VIG said. Board resolutions and a new set of regulatory approvals will also be required. A Memorandum of Understanding should be signed today (Thursday, 23 December 2021), the company said.

The Hungarian government has nominated Corvinus Nemzetközi Befektetési, a 100 percent state-owned Hungarian holding company, as negotiating partner, VIG said.

VIG first signed a deal with Aegon in November 2020 to pick up the Dutch insurer's insurance, pension, asset management and service assets in Hungary, Poland, Romania and Turkey. Those assets were said to carry some €600 million in premium volume, €5 billion in managed pension assets and a 4.5 million total customer base.

Assets in Hungary were said to be of primary significance, with the Hungarian insurance operations said to have the #3 spot on the market and account for two thirds of the total acquired premium volume. The total acquisition was said to put VIG's Hungarian market share upwards of 20 percent.

The Hungarian Interior Ministry moved to deny regulatory approval in April 2021.

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