Aegon N.V. (AEG - Free Report) recently announced that it has closed the combination deal for its Dutch pension, life and non-life insurance, banking, as well as mortgage origination operations with its peer a.s.r., a Dutch insurance group. Last October, the companies reached an agreement for the transaction.
AEG also started an asset management partnership with a.s.r. The transaction provided Aegon with a 29.99% strategic stake in a.s.r. along with EUR 2.2 billion cash proceeds. The combination is expected to have created the number two insurance company in the country. The move is likely to enable the combined entity to scale its businesses across segments.
Two points were slightly amended from the original relationship agreement addressing the CEO succession event and capital management that can change the risk profile. The merger move is likely to generate significant synergies and benefits for business partners, customers and shareholders. The synergies are expected to support dividend growth from a.s.r.
The combination has created a diversified business portfolio, including strong positions in the Dutch pension market, disability and P&C insurance. The move was in line with Aegon’s strategy to release capital from mature businesses and focus more on growth areas.
The transaction is likely to have boosted AEG’s Cash Capital at Holding. The company is expected to commence a share repurchase program of EUR 1.5 billion over a year. Last month, it finished a EUR 200 million stock repurchase program, which started on Feb 10 and ended on Jun 2. Earlier, linked to the a.s.r. combination, Aegon stated that up to EUR 700 million would be used to decrease its gross financial leverage.
Price Performance
Aegon shares have increased 13.8% in the past year against the 2.9% fall of the industry it belongs to.
Zacks Rank & Key Picks
Aegon currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader finance space are Unum Group (UNM - Free Report) , World Acceptance Corporation (WRLD - Free Report) and Old Republic International Corporation (ORI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chattanooga, TN-based Unum is a global financial protection benefit solutions provider. The Zacks Consensus Estimate for UNM’s current-year earnings implies 20.6% year-over-year growth.
Based in Greenville, SC, World Acceptance is a finance company providing personal loan solutions and tax preparation, as well as filing services. The Zacks Consensus Estimate for WRLD’s current-year earnings indicates a more than 200% year-over-year increase.
Headquartered in Chicago, Old Republic International has an insurance underwriting business and related services. The Zacks Consensus Estimate for ORI’s 2023 earnings is pegged at $2.40 per share. It beat earnings estimates in each of the past four quarters, with an average surprise of 29.9%.
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Aegon N.V. (AEG - Free Report) recently announced that it has closed the combination deal for its Dutch pension, life and non-life insurance, banking, as well as mortgage origination operations with its peer a.s.r., a Dutch insurance group. Last October, the companies reached an agreement for the transaction.
AEG also started an asset management partnership with a.s.r. The transaction provided Aegon with a 29.99% strategic stake in a.s.r. along with EUR 2.2 billion cash proceeds. The combination is expected to have created the number two insurance company in the country. The move is likely to enable the combined entity to scale its businesses across segments.
Two points were slightly amended from the original relationship agreement addressing the CEO succession event and capital management that can change the risk profile. The merger move is likely to generate significant synergies and benefits for business partners, customers and shareholders. The synergies are expected to support dividend growth from a.s.r.
The combination has created a diversified business portfolio, including strong positions in the Dutch pension market, disability and P&C insurance. The move was in line with Aegon’s strategy to release capital from mature businesses and focus more on growth areas.
The transaction is likely to have boosted AEG’s Cash Capital at Holding. The company is expected to commence a share repurchase program of EUR 1.5 billion over a year. Last month, it finished a EUR 200 million stock repurchase program, which started on Feb 10 and ended on Jun 2. Earlier, linked to the a.s.r. combination, Aegon stated that up to EUR 700 million would be used to decrease its gross financial leverage.
Price Performance
Aegon shares have increased 13.8% in the past year against the 2.9% fall of the industry it belongs to.
Zacks Rank & Key Picks
Aegon currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader finance space are Unum Group (UNM - Free Report) , World Acceptance Corporation (WRLD - Free Report) and Old Republic International Corporation (ORI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chattanooga, TN-based Unum is a global financial protection benefit solutions provider. The Zacks Consensus Estimate for UNM’s current-year earnings implies 20.6% year-over-year growth.
Based in Greenville, SC, World Acceptance is a finance company providing personal loan solutions and tax preparation, as well as filing services. The Zacks Consensus Estimate for WRLD’s current-year earnings indicates a more than 200% year-over-year increase.
Headquartered in Chicago, Old Republic International has an insurance underwriting business and related services. The Zacks Consensus Estimate for ORI’s 2023 earnings is pegged at $2.40 per share. It beat earnings estimates in each of the past four quarters, with an average surprise of 29.9%.
Top 5 Dividend Stocks for Your Retirement
Zacks targets 5 well-established companies with solid fundamentals and a history of raising dividends. More importantly, they have the resources and will to likely pay them in the future.
Click now for a Special Report packed with unconventional wisdom and insights you simply won’t get from your neighborhood financial planner.
See our Top 5 now – the report is FREE >>
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