European life insurer Athora and Netherlands’ NN Group have teamed up to acquire Dutch insurer Vivat, which was put up for sale last year by Chinese owner Anbang Group Holdings.
NN Group will acquire Vivat's non-life business (Vivat Schadeverzekeringen NV) for a consideration of €416 million, following the closing of the acquisition by Athora. The transaction will be funded from existing cash resources.
Athora will retain Vivat’s life and asset management businesses. Terms of the deal were not disclosed but Athora said its consideration will be funded by commitments from its existing shareholder base and a limited amount of term debt.
The transaction marks Athora's entry into the Dutch market, which it finds "attractive" because of its strong economic fundamentals, positive outlook and robust regulatory environment that recognises an economic view of insurers’ balance sheets. Athora’s future plans are to grow Vivat's life business.
NN Group said the acquisition will enhance its strategic position and further strengthen its non-life platform in the Netherlands.
The transaction is subject to applicable anti-trust and regulatory clearances as well as works council consultation.
Michele Bareggi, CEO of Athora, said: “Today marks our entrance in the Dutch market following our acquisitions and integration of the insurance businesses of Generali in Belgium, Aegon in Ireland and Delta Lloyd in Germany.
"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.”
Lard Friese, CEO of NN Group, added: "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 in our home market.
"After the acquisition of Delta Lloyd in 2017, we gained valuable experience in successfully integrating business operations. In today’s competitive market, scale is essential to deliver attractive and sustainable customer propositions in the longterm. Moreover, it increases our ability to invest in digital capabilities and innovation, which are key to anticipating customer trends and driving the customer experience forward. Vivat policyholders will benefit from the quality of our service and broad product offering. The expertise of the Vivat Non-life employees is important for the future success of the new combined Non-life business."
Ron van Oijen, chairman of Vivat’s executive board, commented: "Since 2016 Vivat has made an extensive transformation which helped us to create a leading, customer focused, efficient and innovative insurer. We are confident that the acquisition by Athora and NN Group will further build upon the knowhow of the VIVAT employees to become an even stronger player within the Dutch insurance market. Our customers can expect that the high service level will be continued going forward."
Source: intelligentinsurer
