VIG: Agreement with Hungary at Aegon – 45 percent state participation

The listed Vienna Insurance Group (VIG) and the Hungarian government have reached an agreement on the main features of a cooperation that provides for the Hungarian state’s stake in the Hungarian Aegon companies and the Hungarian VIG subsidiary Union Vienna Insurance Group of 45 percent. VIG announced this on Wednesday evening. Hungary had previously blocked VIG’s purchase of the Dutch insurer Aegon.

The specific design of the cooperation, which includes the controlling participation and operational management of VIG, is the subject of further negotiations. The Hungarian government nominated Corvinus Nemzetközi Befektet si Zrt., A wholly owned subsidiary of the Hungarian state, as a negotiating partner.

“VIG welcomes the future cooperation with Hungary,” said the VIG broadcast. The signing of a Memorandum of Understanding was scheduled for tomorrow, Thursday, December 23rd. In the next step, VIG and Hungary will negotiate the investment and governance structure, obtain the necessary committee resolutions and apply for the approvals necessary for the implementation of the transaction.

With the acquisition of the Hungarian Aegon companies, VIG becomes the market leader in Hungary. VIG had already acquired Aegon’s Eastern European business in November 2020. The Hungarian state had long resisted foreign market leadership in the insurance sector and blocked the purchase of the Aegon by the Austrian company, the VIG spokesman told APA on Wednesday evening. Now, through the participation of the Hungarian state, the Aegon purchase by VIG should become possible after all. The concrete form of the cooperation, which provides for the acquisition of 45 percent of the companies by the holding company, must now be negotiated.


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