Aegon to sell accident insurance provider Stonebridge to Global Premium

Dutch life insurance company Aegon has agreed to sell Stonebridge, a UK-based provider of accident insurance products, to Global Premium Holdings for a price of around £60 million.

Stonebridge is a direct to consumer insurer, which specializes in accidental death and hospitalization products. The company is claimed to offer policies to almost 200,000 customers in the UK, France, Germany, Spain, Italy, Ireland, and the Nordics.

Stonebridge has been closed for new business since 2014.

Global Premium Holdings, which is headquartered in London, is part of Embignell group. The company offers a variety of accident and sickness insurance policies.

Aegon said that its business profile will be further simplified through the transaction. The sale of Stonebridge will have no effect on Aegon’s core business in the UK, where it is said to concentrate on offering pensions, investment, and protection services offered via intermediaries including financial advisers and employers.

The Dutch life insurer will also be paid a contingent consideration of up to £10 million.

Aegon stated: “The proceeds are equal to one times Stonebridge’s Solvency II Own Funds at year-end 2019. The transaction will not have a material impact on Aegon’s capital position and results.”

The deal, which is subject to receipt of normal regulatory approvals, is likely to be wrapped up by the year-end.