The sale of Stonebridge is said to further simplify Aegon's business profile, while not impacting its UK-based core business, or any material impact on capital position and results
Aegon to sell Stonebridge. (Credit: Aegon.)
Dutch life insurance, pensions and asset management firm Aegon is set to divest its UK-based accident insurance business Stonebridge to Global Premium for around £60m.
Stonebridge is a direct to consumer insurer, focused on accidental death and hospitalisation products, serving nearly 200,000 customers across the UK, Germany, France, Spain, Italy, the Nordics and Ireland. The company has been closed since 2014.
Global Premium is a part of UK-based Embignell group, and provides a range of accident and sickness insurance policies and is headquartered in London.
The transaction, subject to customary regulatory approvals, is expected to be closed before the end of 2020.
Under the terms of the transaction, Aegon is expected to receive net proceeds of around £60m, which includes the purchase price and dividends related to the transaction, along with a contingent consideration of up to £10m.
Proceeds from the transaction would equal the Stonebridge’s Solvency II Own Funds at year-end 2019, said Aegon.
The transaction is expected to further simplify Aegon’s business profile, while not impacting its UK-based core business, or any material impact on capital position and results.
Aegon’s UK operations focus on offering pensions, investment and protection services
Aegon’s UK business focuses on offering pensions, investment and protection services, through intermediaries including employers and financial advisers.
In July, Aegon has joined forces with Banco Santander to expand their life and non-life insurance partnership, following Banco Santander’s acquisition of Banco Popular.
Aegon has agreed to make an upfront payment of €215m and up to €75m in additional payment after five years for a 51% stake in the joint venture with Banco Santander. However, Aegon paid reduced amount upfront, due to in-force portfolio accumulated to Banco Santander.