Aegon takes note of VIG’s announcement regarding Aegon
The Hague, December 22, 2021 – Aegon has taken note of an announcement released today by Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG).
The announcement published by VIG reads as follows:
“Vienna Insurance Group and Hungary come to an agreement on the main lines of cooperation and the further processing of the Hungarian insurance companies AEGON and UNION VIENNA INSURANCE GROUP AG.
Wiener Versicherung Gruppe (VIG) and the Hungarian government have reached an agreement on the principles of cooperation and the way forward, which provides for a 45% stake by the Hungarian state in the Hungarian companies AEGON and UNION Vienna Insurance Group Biztosító Zrt.
The structure of the cooperation, which involves majority participation and operational management by VIG, is the subject of subsequent negotiations. The Hungarian government appointed Corvinus Nemzetközi Befektesi Zrt., a 100% state-owned Hungarian holding company, as a negotiating partner. VIG welcomes the future cooperation with Hungary. The signing of a memorandum of understanding is scheduled for Thursday, December 23, 2021.
In a next step, VIG and Hungary will negotiate the ownership and governance structure, obtain the necessary board resolutions and seek the necessary approvals for the implementation of the transaction.
On November 29, 2020, Aegon agreed to sell its insurance, pension and asset management businesses in Hungary, Poland, Romania and Turkey to VIG for € 830 million. Aegon will continue to work with VIG to complete this transaction.
Aegon’s roots go back over 175 years, to the first half of the 19th century. Since then, Aegon has grown into an international company, with businesses in the Americas, Europe and Asia. Today, Aegon is one of the world’s leading financial services organizations, providing life insurance, retirement and asset management services. Aegon’s goal is to help people achieve lifelong financial security. More information on aegon.com.
Statements contained in this document that are not historical facts are forward-looking statements as defined in the United States Private Securities Litigation Reform Act of 1995. The following terms identify such forward-looking statements: aim, believe, estimate, target, have intention, can, expect, anticipate, predict, plan, rely on, plan, continue, want, foresee, goal, should, would have, could, is confident, aura and similar expressions relating to Aegon. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Aegon assumes 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 simply reflect the expectations of the company at the time of writing. Actual results may differ materially from expectations expressed in forward-looking statements due to changes caused by various risks and uncertainties. These risks and uncertainties include, but are not limited to, the following:
- Changes in general economic and / or governmental conditions, particularly in the United States, the Netherlands and the United Kingdom;
- Changes in the performance of financial markets, including emerging markets, such as:
- The frequency and severity of issuer defaults in Aegon’s fixed income investment portfolios;
- The effects of corporate bankruptcies and / or accounting restatements on the financial markets and the decline in the value of equity and debt securities held by Aegon; and
- The effects of the decline in the creditworthiness of certain public sector securities and the resulting decline in the value of the government exposure held by Aegon;
- Changes in the performance of Aegon’s investment portfolio and lower ratings of Aegon’s counterparties;
- The downgrade of one or more of Aegon’s debt ratings issued by recognized rating agencies and the negative impact such action may have on Aegon’s ability to raise capital and on its liquidity and his financial situation;
- Lowering one or more of the financial strength ratings of the insurers of Aegon’s insurance subsidiaries and the negative impact such action may have on written premium, policy retention, profitability and liquidity its insurance subsidiaries;
- The effect of European Union Solvency II requirements and other regulations in other jurisdictions affecting Aegon capital is required to maintain;
- Changes in interest rate levels and consistently low or rapidly changing interest rate levels;
- Changes affecting exchange rates, in particular the EUR / USD and EUR / GBP exchange rates;
- Changes in the availability and costs associated with sources of liquidity such as financing of banks and capital markets, as well as conditions of credit markets in general, such as changes in the creditworthiness of borrowers and counterparties;
- Increased levels of competition in the United States, the Netherlands, the United Kingdom and in emerging markets;
- Catastrophic events, whether man-made or natural, including by way of example natural disasters, acts of terrorism, acts of war and pandemics, could result in material loss and significantly disrupt Aegon’s business;
- The frequency and severity of insured claims;
- Changes affecting longevity, mortality, morbidity, persistence and other factors that may impact the profitability of Aegon’s insurance products;
- Aegon’s projected results are highly sensitive to complex mathematical models of financial markets, mortality, longevity, and other dynamic systems subject to shocks and unpredictable volatility. If the assumptions of these models subsequently prove to be incorrect, or if errors in these models escape the controls put in place to detect them, future performance will differ from the projected results;
- Reinsurers to which Aegon has ceded significant underwriting risks may default on their obligations;
- Changes in customer behavior and general public opinion related to, among other things, the type of products Aegon sells, including the legal, regulatory or business need to meet changing customer expectations;
- Customer responsiveness to new products and distribution channels;
- Because Aegon’s operations support complex transactions and are highly dependent on the proper functioning of information technology, operational risks such as system interruptions or failures, breaches of security or privacy of data data, cyber attacks, human error, failure to protect personally identifiable information, changes in operational practices or inadequate controls, including with respect to third parties with whom we do business, may disrupt Aegon’s business, damage its reputation and adversely affect its operating results, financial condition and cash flow;
- The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including Aegon’s ability to integrate acquisitions and achieve expected results and synergies from acquisitions;
- Aegon’s inability to achieve expected profit or operational efficiency levels, as well as other management initiatives related to cost savings, Holding’s cash capital, gross financial leverage and free cash flow;
- Changes in central bank and / or government policies;
- Litigation or regulatory action that could require Aegon to pay substantial damages or change the way Aegon does business;
- Competitive, legal, regulatory or tax changes that affect the profitability, cost of distribution or demand for Aegon’s products;
- Consequences of an actual or potential break-up of the European monetary union in whole or in part, or of the United Kingdom’s exit from the European Union and potential consequences if other countries of the European Union leave the Union European;
- Changes in laws and regulations, particularly those affecting the ability of Aegon operations to hire and retain key personnel, the taxation of Aegon companies, the products Aegon sells and the attractiveness of certain products to its consumers ;
- Regulatory changes relating to pensions, investments and insurance in the jurisdictions in which Aegon operates;
- Standard setting initiatives of supranational standard-setting bodies such as the Financial Stability Board and the International Association of Insurance Supervisors or changes to these standards that may impact regional financial regulation (such as the EU) national or US at the federal or state level or on its application to Aegon, including the designation of Aegon by the Financial Stability Board as a Global Systemically Important Insurer (G-SII); and
- Changes in accounting regulations and policies or a change by Aegon in the application of such regulations and policies, whether intentionally or not, that may affect Aegon’s published results, equity or regulatory capital adequacy levels.
This document contains information that qualifies, or may be characterized, as inside information within the meaning of Article 7 (1) of the EU Market Abuse Regulation (596/2014). Further details of the potential risks and uncertainties affecting Aegon are described in its filings with the Netherlands Securities and Exchange Commission and the United States Securities and Exchange Commission, including the annual report. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, Aegon expressly disclaims any obligation or commitment to publicly release any update or revision to any forward-looking statement contained herein to reflect any change in Aegon’s expectations in this regard or any change in the events, conditions or circumstances on which such statement is based.
20211222 Aegon takes note of VIG’s announcement