A regulator in Hungary has blocked a planned acquisition of Aegon’s Central and Eastern European business.
After signing the purchase agreement for the business deal, Vienna Insurance Group (VIG) started negotiations with the local authorities to approve the arrangement.
However, the Hungarian Ministry of Interior informed VIG on 6 April that it would be denied approval for the acquisition of the Hungarian Aegon companies to a foreign investor.
Elisabeth Stadler, CEO of VIG, said: “Our ties to Hungary have grown historically and have always been characterised by mutual appreciation. For a quarter of a century, we have been successfully investing in the Hungarian economy. Therefore, we were surprised by the announcement of the Hungarian authorities.
“By assuming and insuring risks of daily life and through long-term investments, we are making a valuable contribution to the national economy, thus contributing to social security and securing jobs.”
She added: “In all our markets, we are known as a long-term and reliable partner. We know our markets very well due to our long-term strategy. This is especially true for Hungary; we see this country as our home market. We feel a special bond with our neighbour not only because of our common past.
“We also do not see ourselves as a foreign investor, but, based on our local multi-brand strategy and our principle of local entrepreneurship and local management, as a supporter and co-developer of the Hungarian insurance market.”