Aegon’s UK insurance coverage and office pensions enterprise has attracted curiosity from a number of main gamers within the sector, reported the Monetary Instances.
Phoenix Group, Royal London and Scottish Widows are among the many events because the Dutch insurer explores a possible £2bn ($2.7bn) sale.
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Non-public fairness teams reminiscent of CVC have additionally proven preliminary curiosity within the enterprise, sources stated.
The public sale is being managed by funding bankers at Goldman Sachs, with an preliminary bid deadline anticipated within the coming weeks.
Since late final 12 months, the Netherlands-based insurer has been reviewing choices for its UK insurance coverage and office enterprise, as a part of a method to extend its exercise within the US life insurance coverage sector.
As a part of this technique, Aegon intends to undertake the Transamerica identify and relocate its headquarters to the US inside two years.
Aegon’s UK enterprise has round 3.7 million prospects and managed property totalling roughly £220bn on the finish of 2024.
The continued assessment is anticipated to wrap up within the first half of this 12 months, the information publication added.
The division employs roughly 2,500 employees members.
Aegon has indicated that its asset administration enterprise within the UK will stay exterior the scope of any potential sale, noting its intention to proceed offering funding methods within the nation.
In December, chief govt Lard Friese stated any sale could be structured to “shield the worth of our asset administration charges that we’re producing within the UK”, acknowledging that charges from the insurance coverage aspect have been “comparatively low”.
Scottish Widows, owned by Lloyds Banking Group, has expanded by way of earlier acquisitions reminiscent of Embark Group and Zurich’s company financial savings enterprise in Britain.
Phoenix Group, which is able to change its identify to Commonplace Life following an earlier model acquisition, can also be reported to be amongst these contemplating bids.
Royal London not too long ago finalised its personal deal for a part of Aegon’s safety e-book, which included round 400,000 buyer insurance policies.
Aegon, CVC, Goldman Sachs, Phoenix Group, Royal London and Scottish Widows all declined to touch upon developments referring to the sale course of.
This assessment coincides with a interval of heightened deal-making throughout the UK pensions and insurance coverage business.
This week noticed Zurich Insurance coverage verify an strategy to accumulate Beazley in a transaction valued at $10.2bn.
Different latest offers embrace Chesnara’s £260m settlement to buy HSBC Life UK and Aviva’s acquisition of AIG’s UK safety enterprise.
