AEGON has completed its previously announced divestment of Stonebridge, a UK-based accident insurance solutions provider.
The move comes nearly six months after the company agreed to sell Stonebridge to London-headquartered Global Premium Holdings group for £60m, which includes the purchase price and dividends related to the transaction.
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The value does not include a contingent consideration of up to £10m.
According to Aegon, the transaction will not have a material impact on its capital position and results.
The divestment was part of Aegon’s plan to further simplify its operations in order to focus on businesses with greater potentiality and where the company is well positioned for growth.
In December last year, Aegon announced plans to reduce costs by divesting operations that are capital intensive and offer relatively low returns.
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By GlobalDataThe plan includes lowering costs by €400m ($484.5m) in 2023 compared with 2019 and then reinvesting €150m of the savings to fuel growth.
At the time of announcement, Aegon CEO Lard Friese said: “We are narrowing our strategic focus to selected core and growth markets and, within these, have made choices that allow us to focus on those areas where we believe that Aegon is well positioned to create value.
“We have developed an ambitious plan comprised of detailed initiatives designed to improve the operating performance of our business by reducing costs, expanding margins and growing profitably.”
