In accordance with the agreement, terms of the transaction are not being disclosed
Reinsurance Group of America, Incorporated (NYSE: RGA) (RGA) announced that it has agreed to sell its Dutch life insurance company, Leidsche Verzekering Maatschappij N.V. (Leidsche), to De Goudse N.V. (De Goudse). Leidsche has liabilities of approximately $0.5bn at year end 2019.
“RGA remains highly committed to serving its clients in its reinsurance business in the Netherlands,” said Johan Tuijp, Managing Director, Netherlands and Nordics, RGA. “We believe the sale of Leidsche supports their long-term growth strategy in the protection market, which could not be supported directly under RGA ownership, and we are confident De Goudse is aligned with Leidsche’s vision and will be an excellent new home for the policyholders and employees of Leidsche.”
“We initiated the sale process in a pre-COVID-19 environment, and even during these unprecedented times we were able to achieve an optimal transaction outcome,” added Olav Cuiper, Executive Vice President, EMEA Markets, RGA. “We are immensely proud of the team who supported the deal and we believe our longstanding relationship with De Goudse was a key to making this process as smooth and efficient as possible.”
“For many years, life insurance has been one of the most important pillars of De Goudse,” said Geert Bouwmeester, Chief Executive Officer, De Goudse. “In 2018, our company introduced its ‘New-life’ strategy, which encompasses a focus on new product development and production as well as the acquisition of life portfolios and companies that fit in with the strategy of De Goudse. At the end of 2019, we acquired a portfolio from BNP Cardif.”
“The acquisition of Leidsche and the subsequent combining of our life businesses is a significant step in the realization of our ‘New-life’ strategy,” added Robbert Prins, De Goudse Board Member. “Acquiring Leidsche will help us execute on our new business ambitions given Leidsche’s position in term life and annuities. In addition, we see a strong cultural fit between our companies and are very happy to combine the strengths of both our companies.”
In accordance with the agreement, terms of the transaction are not being disclosed. The purchase is subject to approval of the Competition Authority, De Nederlandsche Bank and the Bermuda Monetary Authority, in addition to the completion of the advice procedure with the works council of De Goudse.
Emendo Capital acted as financial advisor and Allen & Overy as legal advisor to RGA on the transaction. In connection with the transaction, Aperghis & Co acted as financial advisor and NautaDutilh as legal advisor to De Goudse.
Source: Company Press Release