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Dutch insurance coverage firm Achmea is in preliminary talks with NN Group and Athora, backed by Apollo International Administration, concerning the divestiture of its life insurance coverage division, reported Reuters, citing sources.
Earlier this week, Rabobank-backed Achmea stated it’s “exploring numerous inside and exterior choices” for its pension and life insurance coverage division.
The enterprise may doubtlessly be valued at greater than €2bn, a supply advised the information company.
The life insurance coverage arm manages property value greater than €40bn, primarily from legacy insurance policies not out there to new purchasers.
Achmea has engaged JPMorgan to help in assessing market curiosity within the enterprise.
Nevertheless, the discussions with potential patrons are nonetheless of their infancy, and there’s no assure {that a} sale will happen.
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All events concerned, together with Achmea, Athora, JPMorgan, and NN Group, have shunned commenting on the matter.
The transfer by Achmea is a part of a broader pattern amongst European insurers to divest non-core and legacy insurance coverage portfolios.
This technique goals to launch capital that’s presently tied up in supporting these insurance policies, permitting for reinvestment in different areas.
Earlier this month, Swiss insurer Baloise entered a reinsurance transaction with RGA Worldwide, a subsidiary of Reinsurance Group of America, to handle a portion of its life insurance coverage enterprise in Belgium, which incorporates round 57,000 insurance policies and reserves of roughly €900m.
Along with NN Group and Athora, Achmea can be in talks with different asset managers which have current insurance coverage platforms, equivalent to Canada’s Brookfield, which has declined to remark.
NN Group and Athora might have a aggressive edge within the bidding course of, given their current operations within the Netherlands, the report stated.
Achmea is open to numerous deal buildings together with an outright sale or forming a three way partnership with a accomplice.
For NN Group, which has a historical past spanning practically two centuries, buying Achmea’s life insurance coverage division may signify considered one of its most vital current transactions.
NN Group’s current acquisitions embrace the life insurance coverage unit of ABN AMRO Verzekeringen in 2022.
It teamed up with Athora for the acquisition of Dutch insurer VIVAT in 2020, the place NN Group absorbed the non-life operations and Athora took over the life insurance coverage enterprise.
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