-- Interpolis becomes part of Eureko via a merger with Achmea -- Rabobank acquires 37% shareholding in Eureko
UTRECHT, Netherlands, April 27, 2005 (PRIMEZONE) -- Eureko, the parent company of Achmea, and the Rabobank Group, are broadening their current co-operation. Today, both parties announced a further step in which Interpolis, the insurance arm of the Rabobank Group, is to merge with Achmea, the Dutch insurance arm of Eureko. Rabobank's shareholding in Eureko is to increase from 5% to 37%. This transaction will result in an insurance group, which consists of a very large Dutch insurer, and with significant activities in a number of other European countries.
The details of the intended transaction are laid out in a Letter of Intent, which has been signed today, in Zeist, Wednesday, April 27, 2005, by Gijsbert Swalef, Chairman of the Executive Board of Eureko, and Bert Heemskerk, Chairman of the Executive Board of Rabobank. This is a progression of the earlier co-operation, which was announced in February 2004.
A year ago, Rabobank and Eureko began working together in the area of health insurance, whereby Interpolis began selling health insurance products of Zilveren Kruis Achmea through the local Rabobanks. From January 1, 2005, Zilveren Kruis Achmea has also insured Rabobank and Interpolis personnel. In addition to these activities, Rabobank acquired a 5% shareholding in Eureko. Additionally, there was a reciprocal exchange of members at the Supervisory Boards of Eureko and Rabobank, and at the Board of Vereniging Achmea and the Centrale Kring Vergadering of Rabobank.
The co-operation has proved to be so successful that Eureko and Rabobank have agreed upon this significant further step.
"This new phase is a result of the success of our initial collaboration," said Gijsbert Swalef, Eureko's Chairman. "At the beginning of 2004, we indicated that we would proceed cautiously. That approach has enabled us to develop synergies gradually. Interpolis provides an important complementary distribution channel for Achmea via the local Rabobanks. The Interpolis brand also fits well with the power brand strategy of Achmea (Centraal Beheer Achmea and Zilveren Kruis Achmea)."
Bert Heemskerk added, "What we have built over the past months has proved so effective that further development was logical. The initial collaboration has delivered practical and tangible benefits. Something which goes well must be given the opportunity to develop further; that is evident."
"It was obvious to centre the increased co-operation around Interpolis," said Heemskerk. "Interpolis is a splendid, modern insurance company which will fit perfectly with the insurance activities of Achmea. It is what you might call a perfect match."
Kick van der Pol, Chairman of the Board of Interpolis, commented, "I am convinced that Interpolis and Achmea will complement each other perfectly, particularly as Eureko is a partner which has a co-operative history. We have achieved a notable position in the market and in this new situation we have the opportunity to strengthen that position, becoming a 'power brand' under our own brand name and marketing strategy. This is important as Interpolis can offer significant added value. The merger makes it possible for Interpolis to grow further."
In the merged entity, Rabobank will remain the principal insurance distribution channel for Interpolis.
The merger of Interpolis and Achmea creates a major Dutch insurance group with strong, well-known brands. The co-operation will create synergies in a number of areas, for example, in market strategy and I.T.
The Supervisory and Executive Boards of the new group will be reorganised accordingly. After Vereniging Achmea, Rabobank will be the second largest shareholder of Eureko.
At the same time as the merger of the insurance activities and the increase in Rabobank's shareholding in Eureko, the exchange of members at the level of Vereniging Achmea and the Centrale Kring Vergadering will also be broadened.
Despite the increased co-operation, both companies will continue to pursue their own development strategies. Eureko retains the possibility of pursuing an IPO, whilst focusing on the Dutch market and on developing its insurance operations in other European territories. This new step fits well with Rabobank's aim to become a market leader in the provision of financial services in The Netherlands.
The transaction between Rabobank and Eureko is subject to all necessary approvals by shareholders and regulatory bodies.
Appendix to press release 'New Step in Eureko- Rabobank Co-operation'
Core figures New Combination (per 31 December 2004)
EUR million Eureko Interpolis Combination
Gross Written Premiums 6.209 4.012 10.221
Net income 1.153* 219 1.372
Shareholders' equity 4.093 1.520 6.800**
Employees (fte) 14.405 5.250 19.655
* Including one-offs results on Group transactions
** Combined shareholders' equity increases by including goodwill
Note: combined figures are pro-forma
Gross Written Premiums (per 31 December 2004)
EUR million Achmea Interpolis Combination Eureko
(incl.
Interpolis)
Life 1.947 2.492 4.439 5.371
Non-Life 1.305 1.520 2.825 2.991
Health 1.818 - 1.818 1.860
Total GWP 5.070 4.012 9.082 10.221
Note: combined figures are pro-forma
Market position New Combination (per 31 December 2004)
Dutch market Achmea Interpolis Combination
Life 6 4 2
Non-Life 4 3 1
Health 2 - 2
Overall position 3 5 1
Distribution Combination
Banking channel 1
Direct writing channel 1
Intermediary channel less than 6
Core figures (per 31 December 2004)
EUR million Eureko Achmea Interpolis
Income
- GWP 6.209 5.070 4.012
- Banking income 890 862 -
- Other income 2.363 1.944 1.295
Total income 9.462 7.876 5.307
Net income 1.153* 425 219
Shareholders' equity 4.093 3.000 1.520
Number of employees 14.405 10.607 5.250
(fte)
* Including one-offs results on Group transactions