AEGON has entered into an agreement with Ergo Hestia to purchase 100 percent of the shares of the pension fund management company PTE Ergo Hestia. The acquisition is subject to approval by the Polish Financial Supervision Commission and anti-trust authorities. The acquisition is expected to be completed in early 2007.
“We look forward to leveraging AEGON’s international pension expertise to serve the growing retirement needs of the Polish market and welcome this opportunity to add the pension activities of PTE Ergo Hestia to the life business of AEGON Poland,” says Don Shepard, the Chairman of the Executive Board at AEGON. “The Central and Eastern Europe region continues to be a key market for AEGON and our recent business development activities demonstrate our long-term commitment to the area.”
As of 31 October 2006, PTE Ergo Hestia managed PLN 2.5 billion (EUR 658 million) in assets with 372,796 members. Following the acquisition, the company will be renamed PTE AEGON Poland.
This acquisition will strengthen AEGON’s overall presence in the Polish financial services market. AEGON acquired a life insurance company there in October 2005, which is the fourth-largest life insurer in Poland based on gross written premiums.