INSURANCE GIANT AEGON ENTERS CZECH REPUBLIC WITH MARKET-SPECIFIC PRODUCTS
15. 4. 2005
AEGON Pojišťovna, a.s., a subsidiary of one of the world’s ten largest insurance groups ranked by market capitzliation and assets – AEGON N.V. - has formally entered the life insurance market of the the Czech Republic.
“We are delighted for the opportunity to bring AEGON’s demonstrated expertise in providing a full range of life insurance solutions to the Czech Republic,” said AEGON Chairman Donald J. Shepard. “Utilizing our successful experience in Hungary and more recently in neighbouring Slovakia, AEGON is eager to begin offering its products and services in what is a clearly a market of significant growth potential. AEGON intends to ensure the same high standards of quality, transparency and reliability which has made us a leading insurance provider internationally.”
AEGON N.V., which is headquartered in The Hague, the Netherlands, has significant operations in the United States and Canada, the United Kingdom, and the Netherlands with additional operations in Taiwan, Spain, Slovakia and Hungary, as well as partnerships in France and China. Net income for the AEGON Group in 2004 totalled EURO 1.663 billion. AEGON’s core lines of business include life insurance, pensions and related savings and investment products. AEGON operates under a decentralized business model, encouraging local managers to operate their businesses according to the specific needs of their customers and local market conditions. In keeping with this approach, Boris Cuchran has been appointed AEGON Pojišťovna’s Chief Executive Officer and will oversee the delivery of products designed specifically for the Czech market.
Prior to its entry into the Czech market, AEGON undertook an extensive market study of the needs and preferences for a variety of insurance and investment products. On the basis of these findings, AEGON has prepared products that are tailored specifically for the Czech market. Initially, AEGON will offer three types of insurance in the Czech Republic: unit-linked insurance AEGON Global, variable-life insurance AEGON Garant with guaranteed level interest rate and child insurance AEGON Juventus.
“In comparison with other Czech insurance companies, we will use brief and simple contracts,” said JUDr. Boris Čuchran, general manager and chairman of the board of AEGON Pojišťovna. Our approach will be to enable the client to pay the insurance before the scheduled due date and those funds will, in turn, l be invested immediately. This is clearly to the benefit of customers who are seeking an even wider array of investment options and opportunities.”
At the beginning, AEGON wants to focus primarily on the quality of concluded insurance contracts, as in the Czech Republic, the total number of insurance contracts is low and the sums insured are also very low. On average, they are often less than one annual income. “In case of a claim, such low amounts do not adequately address the needs of the client or his or her family. In Western Europe, the average sum insured of middle-class citizens equals at least two, four, or, in the best cases, ten-times a person’s annual income,“ continued Čuchran. The level of insurance measured by the ratio of gross premium written and GDP in the Czech Republic is about 1.6 %, while in countries of Western Europe it is approximately 5.1 %. Therefore, the growth potential of the Czech market is substantial.
With respect to international know-how, the Czech branch of AEGON will employ the latest IT solutions developed in co-operation with the companies CSC and NESS, as well as the Group’s experience related with asset administration, risk management and financial management.
All members of the senior management have long-term experience in the insurance business. Before coming to AEGON Pojišťovna, Boris Čuchran served in senior managerial positions in ČSOB Group as Bank Strategy Manager and his last position was General Manager of the Slovak ČSOB Pojišťovna. He worked as a strategic consultant with Braxton / Deloitte Consulting in Paris before. Sales Division Manager, Ing. Libor Nekvasil, worked in top managerial positions in Česká pojišťovna Group and in Wüstenrot Group before. Financial Manager, Ing. Jarmila Rádlová, worked in KPMG and served as Financial Manager in Zürich Insurance Company and in ČPP.
About AEGON N.V.
AEGON N.V. is one of the world's leading listed life insurance companies ranked by market capitalization and assets. AEGON's head office is in The Hague, the Netherlands. At the end of 2004, AEGON companies employed about 27,000 people worldwide. AEGON's businesses focus on life insurance and pensions, savings and investment products. The group is also active in accident and supplemental health insurance and general insurance, and has limited banking activities.
AEGON's three major markets are the United States, the Netherlands and the United Kingdom. In addition, the group is present in a number of other countries including Canada, Hungary, Slovakia, Spain and Taiwan. AEGON is also active in China. AEGON encourages product innovation and fosters an entrepreneurial spirit within its businesses. New products and services are developed by local business units, with a continuous focus on cost control, using a multi-brand, multi-channel distribution approach to meet customers' needs. Respect, quality, transparency and trust constitute AEGON's core values as the company continually strives to not only meet, but exceed the expectations of customers, shareholders, employees, business partners and other stakeholders. Pursuing its mission of creating better financial futures for all stakeholders, AEGON will continue to explore new opportunities for profitable growth.
Kontakt pro média
Ivana Dingová
Tel.: +420 244 090 383, +420 731 621 439
Email: ivana.dingova@aegon.cz
