OVO to transfer its activities to Achmea
Onderlinge Verzekeringen Overheid (OVO, the public authority liability insurer) will become part of Achmea on 1 January 2013. The proposal was approved unanimously at yesterday’s extraordinary general meeting of members of OVO. The activities of the specialist non-life insurer (liability and fraud) will be integrated into Achmea’s Non-Life & Income Protection division. OVO’s staff of around 20 will be transferred to its new owner.
OVO, OVO’s members and Achmea put high confidence in their alliance, which is an attractive option for OVO in the light of shrinking market conditions and rising price pressure. In recent years, there has been a growing trend among public authorities to take part in collective tendering and other forms of cooperation and tenders are making increasingly heavy demands on a relatively small insurer such as OVO.
This transaction means that OVO’s members – over 600 provincial and municipal authorities, water control boards and police forces – will have long-term security. For OVO, Achmea is a natural partner which will enable it to safeguard the continuity and quality of its services. OVO will benefit from Achmea’s cooperative background and its vision of and expertise in this specific area of business. Achmea has held a strong position on the public authority market for many years with its Centraal Beheer Achmea brand. The transaction fits perfectly with Achmea’s ambition to maintain this market position. With the high-quality input of the OVO staff, Achmea expects to be able to expand its services still further. When OVO has been integrated into Achmea’s Non-Life & Income Protection division, the OVO brand will be phased out naturally.
The transfer of the OVO portfolio is subject to Nederlandsche Bank approval. The Netherlands Competition Authority gave the transaction its formal approval in mid-October. Achmea’s Central Staff Council has also issued a positive recommendation.