Aegon Says U.S. Business Merger Will Provide Capital Boost
September 25 2018 - 3:19AM
Dow Jones News
By Adam Clark
Aegon N.V. (AGN.AE) said Tuesday that it expects a one-off boost
of $1.0 billion to its capital-generation from the merger of two of
its U.S. businesses.
The Dutch insurance company said it will merge its Arizona-based
vehicle for reinsuring variable annuities with its Transamerica
Life Insurance Co. business.
"Merging two of our US entities simplifies our legal structure,
increases our capital buffer and leads to the release of reserves
and higher diversification benefits," said Chief Executive Alex
Wynaendts
Aegon said changes to U.S. rules for variable annuity capital
mean the use of its captive Arizona vehicle is no longer
required.
Argon said the capital boost to its Solvency II capital ratio is
expected to be largely offset by the effects of U.S. tax reform in
the second half of 2018, and it doesn't expect any material impact
on its recurring capital-generation.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
September 25, 2018 03:04 ET (07:04 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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