Aegon, ASR will merge Dutch insurance operations, Aegon to receive 2.5 billion euros

AMSTERDAM (Reuters) -Aegon NV said on Thursday smaller peer ASR would acquire its insurance operations in the Netherlands in a deal that would see ASR replace it as the second-largest Dutch insurer.

In exchange, Aegon will receive a 29.99% stake in ASR and 2.5 billion euros ($2.52 billion), the companies said in a joint statement.

The deal, which would create a strong rival for top Dutch insurer NN Group, must be approved by shareholders and regulators, and the companies said they expected it to close in the second half of 2023.

"Today's announcement marks a major milestone in the history of our company and in our long-term ambition to create leaders in our chosen markets," Aegon Chief Executive Officer Lard Friese said in a statement.

Other insurers in the Dutch market include Allianz, Athora, and Achmea.

Aegon is based in the Netherlands but does the majority of its business in the United States, where it is known for the Transamerica brand.

ASR has most of its operations in the Netherlands.

($1 = 0.9930 euros)

(Reporting by Toby Sterling; Editing by Christian Schmollinger and Subhranshu Sahu)