Aegon NV,
the Dutch owner of U.S.
insurer Transamerica Corp., divested the very last 3 billion kilos ($four.4
billion) of annuities from its U.ok. portfolio to prison & popular
institution %.
The transaction, which covers 27,000 policyholders, will
launch some other 275 million pounds of capital that were set apart underneath
Solvency II policies, the organization stated in a declaration on Monday. Aegon
will initially reinsure the liabilities to L&G followed by using a
so-referred to as element VII transfer in order to enhance its capital ratio by
approximately 20 percentage factors.
The divestment “is an important step within the strategic
repositioning of our commercial enterprise inside the U.k.,”
Aegon CEO Alex Wynaendts stated inside the announcement. “The divestment
permits us to completely recognition on growing our platform commercial
enterprise.”
The transaction follows the 6 billion-pound U.k.
annuity deal that Aegon struck with Rothesay life Ltd. in April because the
enterprise seeks to unfastened up capital from non-center components of the
enterprise. The Dutch insurer said it will nonetheless have approximately 1
billion kilos of annuity liabilities on its balance sheet from a so-called
inward reinsurance deal.
Aegon stated the capital generated from the U.k.
operations will be decreased with the aid of about 30 million pounds, at the
same time as profits will fall by way of about 16 million kilos a year. The
deal may also cause a one-time lack of about 215 million pounds, in order to be
mentioned within the 2d quarter.
Aegon fell for the first time in 4 days and changed into
down 2.three percentage to 4.40 euros with the aid of nine:12 a.m. in Amsterdam.
The inventory is down 16 percent this yr.
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