Dutch Finance Minister Jeroen Dijsselbloem said that he is pleased with Anbang's acquisition of Vivat. (Photo : Reuters)
The Dutch Finance Ministry announced on Monday that Anbang Insurance Group, China's major insurer, has acquired Vivat, a Dutch insurance company, from nationalized banking group SNS Reaal.
The agreement states that Anbang is to pay $171 million for 100 percent of Vivat's shares. Vivat is formerly known as Reaal NV.
Aside for the cash-out, Anbang will inject a capital of $879 million to $1.14 billion to revitalize the insurer and pay off internal loans amounting to $630 million.
Jeroen Dijsselbloem, Dutch Finance Minister, said that he is pleased with the result of the negotiations.
"This agreement provides clear perspective on Reaal, its employees and its policyholders. They just remain customer of Reaal Insurance (Vivat) and preserve their rights. The agreement with the wealthy Anbang will strengthen the position of Reaal," he added.
Major losses in real property made the Dutch government absorb SNS Reaal. The nationalization happened in early 2013.
As part of restructuring, Property Finance got separated from SNS Reaal in 2013. SNS Reaal has been searching for an investor to acquire its insurance department.
The Anbang-SNS Reaal agreement is still subject to approval by the Dutch and Chinese government and is expected to be done by the third quarter of this year.
Anbang Insurance Group Co. Ltd. is one of China's comprehensive group companies that deal mostly in the insurance business. Since the company's establishment, it has been developing steadily and has now reached an asset of 800 billion yuan. With over 3,000 outlets, the company's network covers 31 provinces and regions. The company has 20 million customers.
