Aegon to sell Central, Eastern European business to VIG

Aegon has agreed to sell its insurance, pension and asset management business in Hungary, Poland, Romania and Turkey for EUR 830M to Vienna Insurance Group AG Wiener Versicherung Gruppe. The proceeds amount to EUR 830M and represent a multiple of 2.6 times the book value on June 30, 2020. This will result in an increase in IFRS equity of EUR 505M of which EUR 362M will be recognized as book gain based on the balance sheet position on June 30, 2020. The total net underlying earnings of Aegon's businesses in Central and Eastern Europe amounted to EUR 54M for 2019, implying a transaction multiple of 15 times net underlying earnings. As a result of the transaction, the Group Solvency II ratio is estimated to improve by approximately 8 percentage points. The proceeds will be upstreamed to the Group and increase Aegon's financial flexibility to execute on its strategic priorities, including deleveraging. On December 10, 2020, Aegon will provide an update on its strategy and financial targets at its virtual Capital Markets Day. The transaction is subject to regulatory and antitrust approvals customary for transactions of this nature and is expected to close in the second half of 2021.