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CGNU buys up Hungary firm in £64m deal

Norwich Union&#39s parent company CGNU has bought the sixth-biggest life insurance business in Hungary in a £64m deal.

ABN Amro Magyar Elet es Nyugdijbiztosito Reszvenytarsasag was previously owned by Dutch bank ABN Amro. It focuses on the higher-net-worth segment of the Hungarian market and has a direct salesforce of 800 as well as call centre staff.

The acquisition adds to CGNU&#39s business in Poland and its developing businesses in the Czech Republic and Romania. Hungary is deemed one of the most prosperous countries in Central and Eastern Europe.

CGNU says the Hungarian life insurance market grew by 30 per cent a year from 1995-99 although it still remains underdeveloped, with life insurance penetration currently under 1 per cent of gross nat- ional product.

ABN Amro Magyar Elet es Nyugdijbiztosito Reszvenytarsasag sells mainly flexible unit-linked products.

The transaction is expected to be completed by June.

CGNU Group executive director Tony Wyand says: “The acquisition provides a good market position and a platform for further development in Hungary.”

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