SNS Reaal Nationalisation and Its Impact on the Netherlands

In 2013, the Dutch government nationalised SNS Reaal, a significant event in the Netherlands' financial history. This decision was made to prevent a collapse of the bank.

The takeover was done through a special law, which allowed the government to take control of SNS Reaal's assets and liabilities. This move was seen as necessary to protect the interests of depositors and prevent a broader financial crisis.

SNS Reaal's nationalisation had a significant impact on the Dutch economy, with the government assuming responsibility for the bank's debts and assets.

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SNS Reaal made significant acquisitions with the funds raised from its IPO. The bank's focus was on buying an insurance company, and it successfully acquired Bouwfonds, AXA, and Zwitserleven in 2006 and 2007.

These acquisitions were major milestones for the bank, marking a significant expansion of its services and offerings.

De Volksbank was renamed from SNS Bank N.V. as of 1 January 2017.

The consolidation of the main banks under SNS REAAL was announced in September 2016.

De Volksbank was the result of this consolidation.

In October 2015, the Minister of Finance announced that Propertize would be for sale starting in December 2015.

A deal was made with Lone Star Funds and JPMorgan to buy Propertize for €895 million by June 2016.

The deal closed in September 2016, marking a significant acquisition in the industry.

SNS REAAL has operated various subsidiaries over the years, including banks, insurers, and a roadside assistance service.

SNS Bank, ASN Bank, BLG Wonen, and RegioBank are some of the banking subsidiaries that have been part of De Volksbank.

DBV Hypotheken and Winterthur Nederland are insurance subsidiaries that operated via AXA.

Proteq is an insurer with a direct distribution channel, while Route Mobiel offers roadside assistance services.

SNS Asset Management provided asset management services for institutional investors, later becoming Actiam.

SRLEV NV is the holding company name of Reaal, also trading as Europe Life, Extra Medium, Happy Service Insurance, Insurance Hooge Huys, Hooge Huys Virtual Workshop, and REAAL Virtual Workshop.

Bouwfonds Property Finance was a financier of property and holding company, later becoming Propertize.

SNS Securities offered investment banking and securities brokerage services via SNS Bank, later becoming part of NIBC Bank.

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The bank used the money raised as part of the IPO for acquisitions, with a specific goal of buying an insurance company.

In 2006 and 2007, the bank made three major acquisitions: Bouwfonds, AXA, and Zwitserleven.

On 1 February 2013, the Dutch Minister of Finance, Jeroen Dijsselbloem, announced the nationalisation of SNS REAAL and SNS Bank NV, bringing the bank under state control.

The initial cost of the nationalisation was put at 3.7 billion euros.

Junior bondholders were not bailed out and lost their investment completely, although senior bondholders were still protected.

In December 2013, the Dutch government announced its intent to consolidate most of the banking activities of SNS Reaal under SNS Bank.

The entire operation to stabilise SNS REAAL would cost the State €3.7 billion, breaking down into €2.2 billion in new capital injections, €0.8 billion to be written off from the earlier aid package, and €0.7 billion to put the real estate portfolio at arm's length.

The State will also extend €1.1 billion in loans plus guarantees worth €5 billion.

The Dutch Government paid nearly €40 billion to rescue the domestic financial sector in 2008, with capital injections for ING, Aegon and SNS Reaal, as well as nationalising ABN Amro.

SNS Reaal's financial situation was quite volatile in the past, with a net loss of €260 million in 2010. This was a significant downturn from the €87 million net income in 2011.

The company's turnover fluctuated between €4.5 million and €8.5 million from 2007 to 2009. The highest turnover was recorded in 2009 at €8.5 million.

SNS Reaal's balance sheet total was consistently around €125-130 billion from 2008 to 2011. The number of employees peaked at 7520 in 2009.

Here's a breakdown of SNS Reaal's financial performance from 2007 to 2011:

The Future of SNS Reaal is looking bright, with a clear plan in place to return business units to private hands once the company has stabilized. This is a direct instruction from the new management.

The new management has received specific guidance on how to move forward, which includes returning business units to private hands. This will likely involve a careful and strategic process to ensure a smooth transition.

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Market conditions will play a crucial role in determining when the business units can be returned to private hands. The new management will need to carefully monitor the market to identify the right time to make this happen.

The goal is to return the business units to private hands, which suggests that the new management is committed to a hands-off approach. This could be a positive development for the company, allowing it to operate more freely.

If you're looking for important documents related to SNS Reaal, you'll find them under the Attachments section.

There's an expropriation decree from SNS REAAL NV and SNS Bank NV, which is a 72 KB PDF file.

You can also find a press release by the Dutch Ministry of Finance on the expropriation, which is a 54 KB PDF file.