) will acquire the Romanian life insurance and pension facility
of Eureko, a fully owned subsidiary of Achmea. Achmea is a
financial services provider, mainly of insurance. The deal is
expected to culminate in the latter half of 2013, subject to
This acquisition is aimed at intensifying Aegon's existing
business in the Central and Eastern European region. Aegon has
operations in Romania, Hungary, Poland, the Czech Republic,
Slovakia, and Turkey. Furthermore, the company forayed into
Ukraine by acquiring a 100% stake in Fidem Life, the fifth
largest life insurance company in Ukraine.
The most recent acquisition will empower Aegon to consolidate
Eureko's Romanian life insurance and pension fund business into
Aegon Romania operations. It is expected that the company
operations will be facilitated by the fact that it will have
approximately 650,000 pension fund members. Hence, consequent to
the acquisition Aegon Romania will develop into the nation's
third largest pension provider and will be counted among the ten
largest life insurance providers in the country.
Management expects the burgeoning necessities for life insurance
and pension related products and services among the inhabitants
of Romania as well as Central and Eastern Europe to inspire Aegon
to come up with customer-satisfactory long-term financial
solutions. In turn, this will help Aegon to enhance its exposure
to prospective clients and also strengthen its prevailing
foothold in the country.
In order to expand its operations, the company engages in a
number of strategic liaisons. Preceding this deal last December,
Aegon announced a strategic alliance with Spain's largest
financial group Banco Santander, for a period of 25 years. As
part of the alliance, Aegon will acquire 51% stake in both a life
and a non-life insurance company for EUR 220 million.
Other health insurance majors have also been working to improve
the quality of care and service provided to the customers along
with lowering healthcare costs and improving overall value.
Health insuring giant,
), recently announced that it is going to launch another
Accountable Care Organization (ACO) initiative in partnership
with Orlando Health Physician Partners.
Aegon carries a Zacks Rank #3 (Hold). Insurers like
The AXA Group
) carry favorable Zacks Rank #2 (Buy) and are worth noting.
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