Pension and life insurance products provider Swiss Life and SNS Reaal, a provider of innovative financial services in the Netherlands, have come to a mutual understanding concerning the intended sale of Swiss Life's Dutch and Belgian businesses.
The intended sale will also include Zwitserleven, Swiss Life Asset Management and Swiss Life for a total consideration of up to E1535 million, consisting of an initial purchase price of E1445 million and a price adjustment of up to E90 million based on the increase of the local net asset values of Zwitserleven and Swiss Life (Belgium) during 2007.
Following an extensive strategic review, Swiss Life has decided to sell the Dutch and Belgian businesses. Swiss Life believes it would not have been possible for it to achieve a sustainable profitable market position on a standalone basis, neither in the Netherlands nor in Belgium, given the limited scope for consolidation opportunities and the increasing importance of critical mass to deliver growth and sustain margins.
Rolf Dorig, CEO of the group, said: We are convinced that the intended sale of our Dutch and Belgian operations to SNS Reaal will facilitate value creation for our shareholders and that the proposed solution provides new opportunities for the management and employees of these businesses. Zwitserleven has developed into the preferred partner for autonomous pension funds. Our Belgian operation has made progress over the last two years, and is now positioned to benefit from the need for pension solutions.