(Adds details, CEO comment)
Dec 4 (Reuters) - Dutch insurer ASR said on Tuesday it was acquiring Loyalis, part of pensions administrator APG, in a 450 million euro ($512 million) deal to expand in disability insurance.
ASR, which is already present in the disability insurance sector through its De Amersfoortse brand, is the latest insurer looking to strengthen their business in the face of tougher regulation and falling returns from investments.
“The acquisition of the complementary portfolio of Loyalis strengthens ASR’s market position and offers us opportunities to grow further in new segments,” Chief Executive Jos Baeten said in a statement.
The company expects Loyalis to contribute over 40 million euros to its net operating result in 2022.
Loyalis, which offers disability insurance, survivors’ insurance and supplementary pensions, has approximately 450,000 insured persons at around 10,000 employers, ASR said.
The acquisition, which will have an initial negative impact on ASR’s solvency of 9 percentage points, is expected to close in the first half of 2019.
$1 = 0.8783 euros Reporting by Alan Charlish in Gdynia Editing by Edmund Blair and Kirsten Donovan