We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Aegon (AEG) Closes Hungarian Unit Divestment, Plans Buybacks
Read MoreHide Full Article
Aegon N.V. (AEG - Free Report) recently closed its divestment of the Hungarian unit for €620 million (slightly more than $681 million) to the Austrian insurance group, Vienna Insurance Group AG Wiener Versicherung Gruppe. The deal faced roadblocks from the Hungarian government in the initial stages but managed to pull through. The Hungarian state-run company, Corvinus, is expected to receive a 45% stake in the acquirer’s business in the country.
In 2020, the Dutch insurer, Aegon, announced a divestment deal of €830 million, which included its insurance, pension and asset management businesses spread across Central and Eastern Europe. With the sale of its Hungarian business, AEG moves a step closer to its full divestment plan. Further, the company expects to complete its divestments of the Polish, Romanian and Turkish businesses this year.
The divestments are in line with Aegon’s strategy to focus more on its profitable core operations and improve the balance sheet with debt reduction. The proceeds from the deal enabled Aegon to announce a €375 million tender offer for debt repayment and reach its deleveraging target much before the scheduled date in 2023.
Also, AEG intends to utilize the surplus amount to boost shareholder value through a €300 million share repurchase program. Aegon plans to start the repurchase program on Apr 1 and finish by this year-end. The company expects the first tranche of the program, valued at €100 million, to close within the June quarter of 2022.
Price Performance
Aegon has rallied 13% in the past year against a 6.3% decline of the industry it belongs to.
Based in Fairfield, OH, Cincinnati Financial’s consistent cash flow and sufficient cash balance continue to boost liquidity. The Zacks Consensus Estimate for Cincinnati Financial’s first-quarter 2022 bottom line indicates an 8% year-over-year rise. CINF beat earnings estimates in each of the last four quarters, with an average of 38.5%.
First American Financial has been generating improving revenues over the years due to growing direct premiums and escrow fees and title agent premiums. The Zacks Consensus Estimate for First American Financial’s 2022 bottom line has improved 2.2% in the past 30 days. FAF beat earnings estimates in each of the last four quarters, with an average of 29.4%.
Berkshire Hathaway is expected to benefit from disciplined capital management and acquisitions. The Zacks Consensus Estimate for Berkshire Hathaway’s bottom line for 2022 indicates a 6.1% year-over-year rise. Headquartered in Omaha, NE, BRK.B beat earnings estimates thrice in the last four quarters and missed the same once, with an average surprise of 11.9%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Aegon (AEG) Closes Hungarian Unit Divestment, Plans Buybacks
Aegon N.V. (AEG - Free Report) recently closed its divestment of the Hungarian unit for €620 million (slightly more than $681 million) to the Austrian insurance group, Vienna Insurance Group AG Wiener Versicherung Gruppe. The deal faced roadblocks from the Hungarian government in the initial stages but managed to pull through. The Hungarian state-run company, Corvinus, is expected to receive a 45% stake in the acquirer’s business in the country.
In 2020, the Dutch insurer, Aegon, announced a divestment deal of €830 million, which included its insurance, pension and asset management businesses spread across Central and Eastern Europe. With the sale of its Hungarian business, AEG moves a step closer to its full divestment plan. Further, the company expects to complete its divestments of the Polish, Romanian and Turkish businesses this year.
The divestments are in line with Aegon’s strategy to focus more on its profitable core operations and improve the balance sheet with debt reduction. The proceeds from the deal enabled Aegon to announce a €375 million tender offer for debt repayment and reach its deleveraging target much before the scheduled date in 2023.
Also, AEG intends to utilize the surplus amount to boost shareholder value through a €300 million share repurchase program. Aegon plans to start the repurchase program on Apr 1 and finish by this year-end. The company expects the first tranche of the program, valued at €100 million, to close within the June quarter of 2022.
Price Performance
Aegon has rallied 13% in the past year against a 6.3% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Aegon currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the finance space include Cincinnati Financial Corp. (CINF - Free Report) , First American Financial Corp. (FAF - Free Report) and Berkshire Hathaway Inc. (BRK.B - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Based in Fairfield, OH, Cincinnati Financial’s consistent cash flow and sufficient cash balance continue to boost liquidity. The Zacks Consensus Estimate for Cincinnati Financial’s first-quarter 2022 bottom line indicates an 8% year-over-year rise. CINF beat earnings estimates in each of the last four quarters, with an average of 38.5%.
First American Financial has been generating improving revenues over the years due to growing direct premiums and escrow fees and title agent premiums. The Zacks Consensus Estimate for First American Financial’s 2022 bottom line has improved 2.2% in the past 30 days. FAF beat earnings estimates in each of the last four quarters, with an average of 29.4%.
Berkshire Hathaway is expected to benefit from disciplined capital management and acquisitions. The Zacks Consensus Estimate for Berkshire Hathaway’s bottom line for 2022 indicates a 6.1% year-over-year rise. Headquartered in Omaha, NE, BRK.B beat earnings estimates thrice in the last four quarters and missed the same once, with an average surprise of 11.9%.