Aegon announced the acquisition of Fidem Life, the fifth largest life insurance company in Ukraine, further strengthening Aegon's position in the developing Central and Eastern European market. Aegon has been active in the region since 1992 and currently has operations in Hungary, Poland, the Czech Republic, Slovakia, Romania and Turkey.
Under the terms of the acquisition, Aegon will acquire 100% of Fidem Life from local private equity company Horizon Capital. The transaction is expected to close in the first quarter of 2013, pending regulatory approval. Fidem Life will be rebranded "Aegon Ukraine" and will be integrated into the governance and management structure of Aegon CEE. The initial focus of Aegon Ukraine will be to grow its life insurance operations, and further develop its agency network.
Today, Aegon organizes an Investor Day in the US with main focus on the progress of Aegon'sthree strategic business units in the United States; Life & Protection, Individual Savings & Retirement and Employer Solutions & Pensions.
Our View:
Upon full repayment of the Dutch State aid, Aegon didn’t exclude small add-on acquisitions or entering new countries in CE. No price details were disclosed.
Conclusion:
We maintain our Buy rating and € 6.50 target.