China-based Anbang Insurance Holdings has entered into an agreement to acquire Netherlands’ SNS REAAL insurance arm Vivat Verzekeringe, for around €150m.
As of December 2014, regulatory solvency of Vivat was at around 136%, while regulatory solvency of SRLEV, the legal entity including most of the life insurance activities, was around 141%.
The coupon ban imposed by the European Commission on externally placed outstanding subordinated bonds issued by SRLEV was lifted, as a result of the deal.
SNS REAAL executive board chairman Gerard van Olphen said: "Through the sale, VIVAT will fulfil an important role in further expanding the insurance activities of Anbang in the Netherlands.
"We have come to know Anbang as a very dedicated and professional party that is actively expanding its business outside of China. The transaction will safeguard the interests of policyholders and employees of VIVAT."
Vivat, which employs around 4,000 employees, has about six million insurance policies with gross proceeds of approximately €3bn, reported Bloomberg.
Subject to customary conditions such as regulatory approvals, the deal is expected to be completed in the third quarter of 2015.
Anbang Insurance Group said: "We have the capacity to strengthen VIVAT’s solvency and further build on the company’s already strong position in the Netherlands."