Pitch Best Deal 2019: Athora / NN Group – VIVAT 

De beste deal van het jaar is meer dan het hoogste cijfertje in de krant en de kunst van het dealmaken is meer dan het opstellen van een contract. De Awards voor de beste deal zou dus niet alleen op de prijs van de deal gebaseerd moeten zijn, maar vooral op de – toegevoegde – waarde voor een bedrijf en de exit. 

Name of the deal:        Athora and NN Group to acquire VIVAT from Anbang and to sell VIVAT Schadeverzekeringen to NN Group.
Date announced:         7th of June 2019
Published value:         €2.6 billion
Buyer:                          Athora and NN Group
Target:                          Vivat
Seller:                           Anbang
M&A Database:           Bekijk de details van deze deal. (Athora & NN Group acquire Vivat from Anbang)
M&A Database:           Bekijk de details van deze deal. (NN Group acquires VIVAT Schadeverzekeringen from Athora)

Involved firms and advisors sell side:
M&A:                            
J.P. Morgan – Cassander Verwey, Laurent Nevi, Mark Kundersma, Anna Franekova, Bram van Aalten 

Legal:                          
Allen & Overy – Katinka Middelkoop, Christiaan de Brauw, Ellen Cramer de Jong, Jonathan Heeringa, Yvo de Vries, Femke Bierman, Suzanne Sikkink, Godfried Kinnegim. 

PR:                             
Hill+Knowlton Strategies – Ariën Stuijt, Jose Tijssen, Jack de Vries, Derk de Vos. 

Involved firms and advisors target:
FDD:                            
PwC – Jessica Lombardo.

Tax:                             
PwC – Maarten Arends, Hans Seeling, Lorraine Siwabessy. 

Legal:                          
Loyens & Loeff – Ewout Stumphius, Herman Kaemingk, Klaas Wiersma, Kitty Lieverse, Martijn Schoonewille, Wilfred Groen, Bastiaan Cornelisse. 

Involved firms and advisors buy side (NN Group and Athora):
M&A:                            
Aperghis & Co – Nicholas Aperghis, Monte Hoekstra, Praveen Naipal, Alexander Verhoeven. 
Deutsche Bank
BNP Paribas

FDD:                            
KPMG – Ewald van Hamersveld, William Koot, Helen Stijnen, Vanne Hartjes, Daan van Egmond, Vincent van ‘t Verlaat, Julien Cusson, Sander Mulder, Joep van Dingenen, Anouk Zevenbergen, Laura Alberts. 
EY – Wessel Geurts, Mark Reich, Sjors van Kuijk, Herman Appelo, Sander van Weele, Sake Willems, Marcel Visser, Jaap Bennink.

Tax:                             
Meijburg & Co Belastingadviseurs – Niels Groothuizen, Jurgen Stormmesand, Ugurcan Boy, Jochum Zutt, Onno Blankestijn, Yvette Timmermans, Frank Lust, Otto van Gent.
EY – Arjan van Oostrom, Maarten van der Goes, Marit de Hoop, Quirijn Reestman, Maarten Blom, Sebastiaan Swaak.

Legal:                          
Stibbe – Björn van der Klip, Rein van Helden, Rogier Raas, Pieter Schütte, Allard Metzelaar, Manon Cremers, Jeroen Smits, Suzanne Kroner-Rosmalen, Roderik Vrolijk, Samuel Gray, Sam Dykes, Eline Holtman. 
Slaughter and May
Legal:  
Freshfields Bruckhaus Deringer – Hanneke Rothbarth, Winfred Knibbeler, Brechje Nollen, Alexander Doorman, Mandeep Lotay, Jan-Jaap Koningsveld, Bob van Kasteren, Zach Truscott, Saloua Ouchan

PR:                             
Confidant Partners – Sabine Post-de Jong, Frans van der Grint, Linda Heil, Wietze Smid. 

Lead advisor/acquisition financing provider
Deutsch Bank – Olaf van Tuijl, Bastiaan Savalle, Hans Goossens

Pitch

Brief description deal / Deal outline:
Athora and NN Group, as consortium parties, have agreed to collectively acquire all of the activities of VIVAT from Anbang.The deal consists of: (i) a primary transaction, in terms of which Athora has agreed to acquire the whole of the VIVAT Group from Anbang; and (ii) a back-to-back transaction, in terms of which VIVAT (once acquired by Athora) will dispose of VIVAT’s non-life business to NN Group. Pursuant to the primary transaction and the back-to-back transaction each of Athora and NN Group will acquire their respective portions of the VIVAT Group.

Deal rationale:
The back-to-back transaction will further strengthen NN’s non-life business, following which NN Group will become the market leader in Dutch non-life insurances. The Non-life business increases NN’s market share in both the property & casualty and disability & accident segments. In addition, the acquisition will create synergies which will lead to an increase in free cash flow by 2022 and will further optimize capabilities in the bancassurance, broker and direct channels.The back-to-back transaction is expected to result in upfront capital synergies arising from diversification benefits under Solvency II. Additional capital synergies are expected following further progress with the integration, and the application of the NN Group’s Partial Internal Model. Cost synergies will be reflected in future capital generation, and restructuring costs are expected to be in line with precedent transactions of a similar nature. The deal has a strategic rationale for Athora as the acquisition marks the entrance of Athora into the Dutch Market. Athora is building a specialized insurance group in Europe, following their acquisition and integration of the insurance business of Generali in Belgium, Aegon in Ireland and Delta Lloyd in Germany. VIVAT’s strong presence, including its compelling brand portfolio, will become a significant part of Athora’s European operations. Athora aims to invest in the life business in the Netherlands and deliver value not only to VIVAT’s existing customers, but also to Dutch consumers overall.

What is the impact of this deal for the company?
The acquisition of VIVAT by Athora, (and subsequently the non-life business of VIVAT by NN Group), offers the best long-term solution for VIVAT. The new shareholders offer a strong and solid financial ‘base’ – for the deal and for the future entity. The existing strong capitalization of NN Group and Athora combined with Athora’s fresh capital coming into the Dutch market, results in a more competitive and stable insurance industry. This is a “best of both worlds” solution for VIVAT, combining an established and renowned Dutch insurance brand with a specialized and focused European insurance player. Given the joint strength of both parties, NN Group and Athora are able to provide a natural and logical home to all involved with VIVAT.

What is the impact of this deal for the direct stakeholders?
The acquisition offers VIVAT policyholders, employees, and distribution partners a long-term solution from an established and renowned Dutch insurance brand and a specialized insurance group focused on Europe. Athora and NN Group offer the knowledge, ambition and financial strength to provide VIVAT’s policyholders with long-term certainty and attractive, stable returns, while also maximizing the benefits for other key stakeholders.

What is the impact of this deal on the society?
The transaction leads to a stronger proposition in the respective life and non-life markets in the Netherlands, enhancing customer offerings and injecting fresh capital in the Dutch insurance market. Both new owners have a long-term, strategic commitment to the Dutch insurance market and offer a strong and solid financial base.

Why does this deal deserve a nomination?
This deal deserves a nomination because of the aforementioned complexity and the prominence and importance of this deal within the Dutch insurance market.

Comments Panel of Judges:
Een complexe zaak met een strak geleid verkoopproces, zo werd de deal samengevat. Anbang was verplicht om de verzekeraar in de verkoop te doen en volgens de jury heeft JP Morgan een uitstekende deal gedaan. De combinatie van Private Equity met een strategische partij bij de opsplitsing maakte de deal complexer, maar ook completer. Niet onbelangrijk voor de jury: het gevoel van ‘Hollands Glorie’, omdat een Nederlandse partij terugkoopt uit China. Het formaat van de deal en het feit dat er drie zeer gemotiveerde combinaties om de prijs streden maakte dit tot een van de meest in het oog springende M&A-deals van 2019. ‘Geen deal voor de poes!’ zoals een jurylid het uitdrukte.