AEGON Buys 50% Stake in Caixa Terrassa's Life Insurance and Pension Unit
August 29 2008 - 1:00AM
PR Newswire (US)
Companies Sign Exclusive Life Insurance, Pension and Health
Distribution Deal THE HAGUE, The Netherlands, August 29
/PRNewswire-FirstCall/ -- AEGON has signed a life insurance,
pension and health joint venture agreement with savings bank Caixa
Terrassa, further strengthening the Group's position in the Spanish
market. The partnership gives AEGON access to the north-eastern
region Catalonia, one of Spain's wealthiest and more dynamic areas
with a population of more than seven million. Caixa Terrassa serves
approximately 500,000 customers and is one of the largest savings
banks in Catalonia. Last year, Caixa Terrassa's life insurance,
pension and health unit Caixa Terrassa Vida wrote almost EUR 215
million in gross premiums. As a result of this new partnership,
AEGON will become the sixth largest life insurer in Spain(1). As
part of the joint venture agreement, AEGON will pay EUR 190 million
for a 50% stake in Caixa Terrassa Vida. Based on performance of the
joint venture, AEGON may pay an additional consideration to Caixa
Terrassa. Under the joint venture agreement, Caixa Terrassa will
exclusively distribute life insurance, pension and health products
through its network of almost 300 bank branches. AEGON will fully
integrate Caixa Terrassa Vida's back office into its own
operations. AEGON's partnership with Caixa Terrassa is part of a
broader strategy designed to expand the Group's international
presence and target more of its financial resources toward
businesses with attractive growth and higher returns. AEGON will
finance the acquisition out of existing excess capital, and expects
the transaction to be marginally accretive to earnings. "We are
very pleased with this partnership which is key in securing access
to the Catalonian market, one of the wealthiest regions of Spain,"
said AEGON CEO Alex Wynaendts. "Adding Caixa Terrassa Vida to our
franchise fits very well with our strategy of strengthening our
position in the Spanish life insurance market. We look forward to a
long and successful cooperation with Caixa Terrassa." AEGON already
has distribution partnerships in place with four other regional
savings banks across Spain. With this latest transaction, AEGON
products and services will be distributed through a total of 2,200
bank branches around the country. AEGON's joint venture agreement
with Caixa Terrassa is expected to close during the fourth quarter
of 2008 and is subject to approval by the Spanish and European
regulatory authorities. AEGON AEGON is one of the world's largest
life insurance and pension groups, and a strong provider of
investment products. AEGON empowers local business units to
identify and provide products and services that meet the evolving
needs of customers, using distribution channels best suited to
local markets. AEGON takes pride in balancing a local approach with
the power of an expanding global operation. With headquarters in
The Hague, the Netherlands, AEGON companies employ more than 31,500
people worldwide. AEGON's businesses serve millions of customers in
over twenty markets throughout the Americas, Europe, and Asia.
Respect, quality, transparency and trust constitute AEGON's core
values as the company continually strives to meet the expectations
of customers, shareholders, employees and business partners. AEGON
is driven to deliver new thinking with the ambition to be the best
in the industry. AEGON Spain AEGON first entered the Spanish market
in 1980 when it bought Seguros Galicia. Since then, the Group's
operations have expanded significantly. In Spain, some 70 percent
of life insurance policies are sold through the country's banks.
For this reason, Spain in recent years has been an important part
of AEGON's efforts to expand its web of bank distribution
partnerships around the world. Today, AEGON has partnerships in
place with five of Spain's largest savings banks: Caja de Ahorros
del Mediterraneo, Caja Navarra, Caja de Badajoz, Caja Cantabria and
Caixa Terrassa. Strong economic growth, changing demographics and
the recent focus on bancassurance have transformed Spain into one
of AEGON's fastest-growing businesses. Caixa Terrassa Founded in
1877, Caixa Terrassa is the eighth oldest savings bank in Spain. It
has assets under management of approximately EUR 20 billion and a
loan portfolio of some EUR 9 billion. Caixa Terrassa's insurance
division was founded in 1988 and manages 220,000 policies. Caixa
Terrassa has nearly 300 branches, mostly in Catalonia, and employs
1,600 people. Forward-looking statements The statements contained
in this press release that are not historical facts are
forward-looking statements as defined in the US Private Securities
Litigation Reform Act of 1995. The following are words that
identify such forward-looking statements: believe, estimate,
target, intend, may, expect, anticipate, predict, project, counting
on, plan, continue, want, forecast, should, would, is confident,
will, and similar expressions as they relate to our company. These
statements are not guarantees of future performance and involve
risks, uncertainties and assumptions that are difficult to predict.
We undertake no obligation to publicly update or revise any
forward-looking statements. Readers are cautioned not to place
undue reliance on these forward-looking statements, which merely
reflect company expectations at the time of writing. Actual results
may differ materially from expectations conveyed in forward-looking
statements due to changes caused by various risks and
uncertainties. Such risks and uncertainties include but are not
limited to the following: - Changes in general economic conditions,
particularly in the United States, the Netherlands and the United
Kingdom; - Changes in the performance of financial markets,
including emerging markets, such as with regard to: - The frequency
and severity of defaults by issuers in our fixed income investment
portfolios; and - The effects of corporate bankruptcies and/or
accounting restatements on the financial markets and the resulting
decline in the value of equity and debt securities we hold; - The
frequency and severity of insured loss events; - Changes affecting
mortality, morbidity and other factors that may impact the
profitability of our insurance products; - Changes affecting
interest rate levels and continuing low or rapidly changing
interest rate levels; - Changes affecting currency exchange rates,
in particular the EUR/USD and EUR/GBP exchange rates; - Increasing
levels of competition in the United States, the Netherlands, the
United Kingdom and emerging markets; - Changes in laws and
regulations, particularly those affecting our operations, the
products we sell, and the attractiveness of certain products to our
consumers; - Regulatory changes relating to the insurance industry
in the jurisdictions in which we operate; - Acts of God, acts of
terrorism, acts of war and pandemics; - Changes in the policies of
central banks and/or governments; - Litigation or regulatory action
that could require us to pay significant damages or change the way
we do business; - Customer responsiveness to both new products and
distribution channels; - Competitive, legal, regulatory, or tax
changes that affect the distribution cost of or demand for our
products; - Our failure to achieve anticipated levels of earnings
or operational efficiencies as well as other cost saving
initiatives; and - The impact our adoption of the International
Financial Reporting Standards may have on our reported financial
results and financial condition. (1) Source: ICEA, based on
consolidated numbers (on a 100% basis) Group Corporate
Communications & Investor Relations AEGON N.V. Media relations
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CONTACT: Group Corporate Communications & Investor Relations
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