Dutch insurance provider Aegon has entered into a 50:50 joint venture with Banca Transilvania to create and operate a mandatory pension company in Romania, which will be established during summer 2007.
The establishment of the new company is expected to coincide with the implementation of a mandatory pension system, anticipated to be operational in Romania by early 2008.
In addition, Aegon will establish a life insurance company in Romania, and will enter into a distribution agreement with Banca Transilvania to sell co-branded products through the bank’s network of 340 branches.
The proposed partnership with Banca Transilvania and our recent acquisition of a pension management company in Poland will further strengthen our presence in the central and eastern European pension markets, said Gabor Kepecs, CEO of Aegon central and eastern Europe, who will lead Aegon’s implementation of the new joint venture company.
We look forward to combining Aegon’s expertise in providing innovative life insurance and pension solutions with the solid reputation and strong distribution capabilities of Banca Transilvania to maximize the opportunities in the Romanian market.
Both parties expect to enter into definitive agreements regarding the partnership, which is subject to regulatory approvals, in due course.