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“This transaction simplifies our corporate structure and strengthens our balance sheet,” said Lard Friese, CEO of Aegon. “In accordance with our strategy, we focus on the countries and businesses where Aegon can create the most value.”
This puts Hungary’s third largest insurer, the largest home insurance portfolio, the eighth fund manager and the third largest voluntary pension fund into new hands. Not only does the 28-year insurance success story reach its new chapter, but the biggest change in ownership in the last 12 years is also taking place in the Hungarian insurance industry.
The value of the transaction is 830 million euros, 2.6 times the book value as of June 30, 2020. This translates into an increase of 505 million euros in IFRS capital by the seller. Net operating profit for Aegon’s Central and Eastern European companies in 2019 was € 54 million. The price is 15 times higher, which, like the 2.6 P / BV ratio, seems particularly high.
We will apply with a more detailed analysis tomorrow!
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