Insurance group NN, which owns Nationale-Nederlanden, wants to take over sector peer Delta Lloyd for some €2.4bn in cash.

NN is offering €5.30 a share for Delta Lloyd, which is a premium of 29% on the company’s closing price on October 4.

NN’s chief executive Lard Friese, said last year that a takeover of Delta Lloyd was an option. ‘The combination will be a leading player in the Dutch insurance, banking and asset management markets, with a strong international presence,’ Friese said in a statement on Wednesday.

NN was spun off by financial services group ING in 2014 after being ordered to do so by the European Commission following ING’s bailout during the financial crisis.

Delta Lloyd is expected to react to the bid later on Wednesday.

Finance minister Jeroen Dijsselbloom and the Dutch central bank have called for consolidation in the insurance sector, which is dealing with low interest, tougher capital requirements and a lack of public confidence following the investment-based insurance policy scandal.

According to broadcaster NOS, insurance group Vivat, which owns the Reaal and Zwitserleven brands, is also interested in Delta Lloyd.