ASR Nederland, the Amsterdam-listed insurer, has announced an increase in its estimated cost synergies following its combination with Aegon’s Nederland business. The company now aims to deliver overall run-rate cost synergies of €215 million, up from the initially targeted €185 million when the deal was announced in October 2022.
The transaction, which closed in July, involved ASR paying €2.25 billion in cash for Aegon’s Dutch pension, life and non-life insurance, banking, and mortgage origination activities, in addition to obtaining a 29.99% stake in the Dutch insurer.
ASR expects the integration synergies to be fully realized within three years of the transaction close, with 70% expected to be achieved by 2025.
In an investor update, the company stated that the combination has so far demonstrated significant strategic and financial benefits. Half of the projected cost synergies will come from staff reduction, 30% from system integration and migration, and the remaining 20% from other sources such as office closures in The Hague and Leeuwarden, as well as lower marketing and advertising costs.