Insurer ASR to consider sale of bank acquired in Aegon deal, source says

By Pablo Mayo Cerqueiro and Toby Sterling

LONDON/AMSTERDAM – Dutch insurer ASR will take into account a sale of its banking arm after finishing its acquisition of rival Aegon’s home operations, a supply near the matter advised Reuters.

ASR anounced in October that it might purchase the majority of Aegon’s enterprise within the Netherlands, together with its native insurance coverage actions and credit score subsidiary Aegon Financial institution, with the deal anticipated to shut within the second half of this 12 months.

The lending enterprise, nevertheless, is prone to be put up on the market, given ASR‘s earlier stance on banking operations, the supply mentioned on situation of anonymity as a result of the discussions are non-public.

ASR labelled its unique banking arm, ASR Financial institution, as “non-core” in 2018 and bought a part of it to rival Achmea the next 12 months. It completed winding down the enterprise in 2020.

No ultimate resolution has been taken, the supply added.

“In the mean time nothing will change for purchasers and workers of the financial institution. Initially, Knab/Aegon Financial institution is a good firm with a powerful place within the Dutch market,” an ASR spokesperson mentioned.

“After we've got accomplished the transaction, July 2023 on the earliest, we are going to take into consideration the way forward for the financial institution.”

Aegon referred remark to ASR.

The financial institution, identified for its on-line model Knab, is one among a handful of smaller lenders vying in opposition to Dutch giants ING, ABN Amro and Rabobank, which management a lot of the market.

These embrace the banking subsidiaries of wider insurance coverage conglomerates corresponding to NN Group and insurance coverage cooperative Achmea.

Aegon Financial institution had 16.2 billion euros ($17.6 billion) in property on its stability sheet on the finish of 2021, with 735.2 million euros of fairness. It generated 81.6 million euros in internet revenue and return on fairness of 4.2%.

ASR paid 2.5 billion euros in money for Aegon’s Dutch operations, with Aegon to retain a 30% stake within the enlarged group.

($1 = 0.9199 euros)