Athora, a Europe focussed specialised insurance and reinsurance group, has agreed to acquire Dutch insurance company VIVAT from China-based Anbang Group for an undisclosed price.
As part of the overall transaction, Athora has agreed to sell VIVAT Schadeverzekeringen (VIVAT Schade), the non-life business of the Dutch insurer, to NN Group, for €416m (£370.21m) in cash, upon completion of its deal with Anbang.
Athora will retain ownership of the life and asset management businesses of the Dutch insurance firm.
NN Group CEO Lard Friese said: “We are pleased that together with Athora, we can offer VIVAT stakeholders a clear path for the future. For us, this acquisition represents a next step in strengthening our non-life business.
“After the acquisition of Delta Lloyd in 2017, we gained valuable experience in successfully integrating business operations. In today’s competitive markets, scale is essential to deliver attractive and sustainable customer propositions in the long-term.”
Athora said that the Dutch market is attractive to it and that the acquired business will give it a strong base for future growth. The company attributes this to VIVAT’s scale in the Dutch market, strong brands, deep distribution and underwriting capabilities across life and pensions, along with a recently modernised and scalable IT platform.
Apart from that, the company said that there is significant growth potential in life and pensions, particularly in guaranteed products, which it plans to develop further.
Athora CEO Michele Bareggi said: “We are building a specialised insurance group in Europe and VIVAT’s strong presence, including its compelling brand portfolio, will become a significant part of our European operations.
“We aim to invest in the life business in the Netherlands and deliver value not only to VIVAT’s existing customers, but also to Dutch consumers overall. New product introductions, competitive pricing and a renewed focus on a broad spectrum of customer services will be part of our offering.”
Athora intends to operate VIVAT as an independent company with an aim to become the top player in life and pension guaranteed products in the Dutch market. Through the acquisition, the company plans to create a sustainable and value generative business model that will generate better results to all stakeholders.
The two transactions, which will be subject to regulatory approvals and other customary closing conditions, are expected to be wrapped up in the first quarter of 2020.