NN Group, ABN AMRO Bank and their joint venture ABN AMRO Verzekeringen (AAV) announce today that they have reached an agreement to sell AAV’s life insurance subsidiary to Nationale-Nederlanden Levensverzekering Maatschappij N.V. (NN Life & Pensions).
AAV is a joint venture between NN Group (51%) and ABN AMRO Bank (49%) that provides insurance products and services to over one million retail and corporate customers. NN Group already consolidates the life insurance activities of AAV. ABN AMRO Bank and NN Group have agreed to extend their successful cooperation in AAV by 5 years until 2038, if certain customary performance criteria are met. Following the transaction, AAV will focus on its non-life insurance business and its insurance broker activities. NN Group and ABN AMRO Bank have agreed to make additional investments in the coming years to strengthen AAV’s digital capabilities and further grow its non-life portfolio.
The life insurance subsidiary of AAV, ABN AMRO Levensverzekering N.V. (AAL), will be integrated into NN Life & Pensions. The intended transaction will have no impact on the services and guarantees to customers. NN Life & Pensions and ABN AMRO Bank intend to continue the sale of term life products via the bank’s channels.
Leon van Riet, CEO Netherlands Life & Pensions and member of the Management Board of NN Group: ‘This transaction is in line with our strategy to achieve further efficiencies by leveraging our existing closed book capabilities. We are pleased to continue our successful collaboration with ABN AMRO Bank and look forward to further supporting AAV’s growth strategy in non-life insurance.’
NN Life & Pensions will acquire 100% of ABN AMRO Levensverzekering N.V. from AAV for a total amount of EUR 253 million. This will be financed from existing cash resources of NN Life & Pensions. Following the transaction, AAV intends to distribute the proceeds from the transaction, after deduction of costs related to the transaction, to its shareholders NN Group and ABN AMRO Bank.
The transaction is expected to have a limited negative impact on NN Group’s Solvency II ratio on closing, which is expected to change into a limited positive impact following the envisaged legal merger of AAL and NN Life & Pensions and the application of NN Group’s Partial Internal Model. On a consolidated basis, the acquisition is expected to result in a net cash outflow from NN Group of EUR 128 million for the indirect 49% stake in AAL and an increase of its dividend capacity of approximately EUR 15 million per annum.
The transaction is subject to regulatory approvals and is expected to close in the second half of 2022.
ABN AMRO Bank
ABN AMRO Bank is een OPF met eind Q3 2021 een belegd vermogen van € 33.581 miljoen waarvan 0% herverzekerd en 0% voor risico deelnemer.
Het fonds heeft een deelnemersbestand met in 2020 18.339 actieve bijdragers en 27.816 pensioengerechtigden. De beleggingen voor risico pensioenfonds hadden in Q3 2021 een rendement van 0%.
Eind Q3 2021 had het fonds een beleidsdekkingsgraad van 132.2% terwijl de vereiste dekkingsgraad op dat moment 120.0% bedroeg. De fiduciair manager van het fonds is non external en de pensioenadministratie wordt uitgevoerd door non external.
