We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Aegon (AEG) Closes Combination of Dutch Operations With a.s.r
Read MoreHide Full Article
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.
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%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Aegon (AEG) Closes Combination of Dutch Operations With a.s.r
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.
Image Source: Zacks Investment Research
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%.