The Netherlands based underwriter Aegon will purchase Ukraine based insurer Fidem Life, further boosting its capabilities in the developing Central and Eastern European market.

Aegon has been trading in the region since 1992 and presently manages operations in Hungary, Poland, the Czech Republic, Slovakia, Romania and Turkey.

As per terms of the deal, the Dutch conglomerate will acquire 100% of Fidem Life from local private equity company Horizon Capital.

Following the receipt of regulatory approval, the transaction is expected to complete during the first quarter of 2013, and the acquired entity will be renamed ‘Aegon Ukraine’.

The company will focus on enhancing its life insurance operations, as well as further develop its agency network in the region.

Aegon CEE CEO and Aegon’s Management board member Gábor Kepecs said, "Given the sizeable population and low penetration of life insurance in the country, Ukraine offers Aegon an attractive long-term growth opportunity."

Headquartered in Hague, Aegon offers life insurance, pension and asset management services in more than 20 markets in the Americas, Europe and Asia and serves 47 million customers worldwide.