VNRFY - Aegon reaches agreement to sell its Central Eastern European business

Aegon (AEG) agrees to sell its insurance, pension, and asset management businesses in Hungary, Poland, Romania and Turkey for EUR 830M (~$995M) to Vienna Insurance Group AG (VNRFY) in a move to simplify AEG's footprint and strengthen its balance sheet.The gross proceeds, representing a multiple of 2.6x book value on June 30, 2020, will increase AEG's IFRS equity of EUR 505M, of which EUR 362M will be recognized as a book gain based on the balance sheet position on June 30.Total net underlying earnings of AEG's businesses in Central and Eastern Europe were EUR 54M for 2019, implying a transaction multiple of 15x net underlying earnings.As a result of the transaction, the Group Solvency II ratio is estimated to improve by ~8 percentage points.Proceeds will increase AEG's flexibility to execute on its strategic priorities, including deleveraging.The companies expect the transaction to close in H2 2021.AEG will provide an update on

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Aegon reaches agreement to sell its Central, Eastern European business