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SNS REAAL announces sale VIVAT Verzekeringen to Anbang Insurance Group

Monday, February 16, 2015

SNS REAAL announced today that it has signed an agreement with Anbang Group Holdings Co. Ltd., a 100% subsidiary of Anbang Insurance Group Co. Ltd. (Anbang), a leading Chinese insurance company, for the sale of VIVAT Verzekeringen (REAAL NV).

Under the agreement, Anbang acquires 100% of the shares of VIVAT for a consideration of € 150 million. The solvency of VIVAT will be strengthened to adequate levels through a capital injection. The total financial commitment may vary due to changes in the IFRS equity between 31 December 2014 and 30 June 2015, the anticipated effective date of the sale.

The transaction is subject to customary conditions such as regulatory approvals. Furthermore, in case of a strong decline in IFRS equity between 31 December 2014 and 30 June 2015, the transaction will not materialise. A sale of VIVAT is expected to be completed in the third quarter of 2015.

Following completion of the sale of VIVAT, SNS REAAL will take a next step in the restructuring process following the nationalisation. In consultation with the Dutch State, SNS REAAL has decided to work towards a standalone position of SNS Bank. It is anticipated that the first step in this process will be a transfer of SNS Bank from SNS REAAL to the Dutch State at the time of the sale of VIVAT. The specific conditions and timetable for such a transfer are not yet determined.

As a result of the transaction, the coupon ban imposed by the European Commission on externally placed outstanding subordinated bonds issued by SRLEV has been lifted. However, until a transaction is completed, SRLEV will make use of its optional interest payment deferral right not to pay the coupons on these subordinated bonds.

Gerard van Olphen, Chairman of the Executive Board: “SNS REAAL is pleased to announce the sale of VIVAT to the Anbang Insurance Group. Based in China, Anbang operates globally with activities in North America, Europe and Asia. We welcome the investment of Anbang in the Dutch insurance sector. Through the sale, VIVAT will fulfil an important role in further expanding the insurance activities of Anbang in the Netherlands. We have come to know Anbang as a very dedicated and professional party that is actively expanding its business outside of China. The transaction will safeguard the interests of policyholders and employees of VIVAT. With the separation of Propertize on 30 December 2013, the current sale of VIVAT and the forthcoming transfer of SNS Bank to the Dutch State, we are moving on to the final stage of the restructuring process of SNS REAAL.’’

Anbang Insurance Group: “We are delighted to announce the acquisition of VIVAT. This transaction fits Anbang’s strategy of international diversification and development. We have the capacity to strengthen VIVAT’s solvency and further build on the company’s already strong position in the Netherlands. We are confident that we can provide a solid foundation for VIVAT, its customers and its staff. We look forward to a long and successful relationship with the company and its customers. We believe that Anbang can benefit from the ongoing consolidation in the Dutch insurance sector.”

At the end of December 2014, based on unaudited financial statements, regulatory solvency of VIVAT stood at approximately 136%, while regulatory solvency of SRLEV, the legal entity comprising most of the life insurance activities, was approximately 141%.

As the steps announced above will directly affect the SNS REAAL Group structure, SNS REAAL will postpone publication of its 2014 annual results, scheduled for 12 March, to a later date.

For more information please contact

Corporate Communications

Chantal van den Berg

Chantal van den Berg

+31 (0)6 - 51 41 49 69

corporatecommunicatie@snsreaal.nl

Jeroen de Graaf

Jeroen de Graaf

+31 (0)6 - 18 30 65 75

corporatecommunicatie@snsreaal.nl

Corporate Communications

+31 (0)30 219 61 04

corporatecommunicatie@snsreaal.nl

 

Investor Relations

Jacob Bosscha

Jacob Bosscha

+31 (0)30 291 42 46

jacob.bosscha@snsreaal.nl

Kagan Köktas

Kagan Köktas

+31 (0)30 291 42 47

kagan.koktas@snsreaal.nl