Aegon Completes Sale of Dutch Funeral Insurance Business

Aegon Group said it completed the sale of its Netherlands funeral insurance business to Dutch investment firm Egeria.

The sale brought 212 million euros ($286 million) in for Aegon. The group said it decided to sell the business as a result of its ongoing review of its business portfolio. "The sale will bring greater focus to Aegon's product range in the Netherlands," Aegon said.

Aegon had said earlier the sale of Aegon NabestaandenZorg will have a positive effect on its excess capital position (BestWire, Feb. 3, 2010).

The group had said the 19 employees affected by the sale will retain their jobs. The company will continue to operate under the name Axent.

According to Egeria, Axent had been the name of the business prior to its acquisition by Aegon, a brand which now returns. Axent will once again operate as an independent entity, Egeria said.

Axent had been operating since 1846, Egeria said.

Hans Croes has been appointed as Axent's new general manager. He has worked in the insurance business with Delta Lloyd, Axa Verzekeringen, Yarden Uitvaartverzekeringen and other companies, said Egeria.

In 2009, the funeral insurance business generated about 70 million euros in gross premiums, according to Aegon.

Last year, Aegon sold its Aegon Life Insurance (Taiwan) Inc. unit as part of its strategic plan to optimize capital allocation and returns (BestWire, Sept. 1, 2009).

In 2009, Aegon recorded net income of 204 million euros, compared with a net loss of 1.1 billion euros the previous year. Pretax earnings for life and protection rose 15.5% to 1.1 billion euros. General insurance pretax earnings fell 20% to 36 million euros.

Egeria, a Dutch private equity company, said it invests in "healthy companies" in the Netherlands with the aim to create long-term value for stakeholders. The firm has 1 billion euros in funds under management and invested in more than 25 companies in recent years.

(By David Pilla, international editor, BestWeek: [email protected])