Dutch Aegon and Transylvania Bank form joint venture for Romanian Market

The Dutch company Aegon and Banca Transilvania signed an agreement memorandum on the forming and management of a joint venture company addressing the Romanian life insurance market, a press release informs. The company will be formed this summer, with each of the two institutions holding 50% of the deal.

The insurance company will be headquartered in the city of Cluj and will offer co-branded products through Transylvania’s 340 banking units. The Aegon release also informs that another similar joint venture will be opened for the obligatory private pensions.

Aegon, the second largest insurance company in Holland, announced its intention to enter the Romanian market since December 2006. The company controlled, at the end of 2005, 24% of the Dutch private pensions market.

The Transylvania Bank had a 23.7 million euros net profit during the first nine months of 2006, 15% more compared to 2005.