THE HAGUE, The Netherlands,
July 10, 2015 /PRNewswire/ --
Aegon's subsidiary Aegon USA,
LLC has reached an agreement with Greenspoint Capital and The
Newport Group to sell Clark Consulting, its Bank-Owned Life
Insurance (BOLI) distribution and servicing unit in the US, for
USD 177.5 million (EUR 160 million).
Aegon aims to enhance its risk-return profile and to improve
capital efficiency. This transaction demonstrates the company's
ongoing efforts to further reduce the capital deployed to its
run-off businesses and increase the return on capital invested.
Clark Consulting is a distinct entity within the BOLI/COLI
insurance business that is currently in run-off. The BOLI/COLI
insurance block with a balance of USD 8.5
billion is not part of this transaction and will continue to
be serviced by Aegon's US subsidiaries.
The parties anticipate that the transaction will close in the
third quarter of 2015, subject to regulatory approvals.
Note to the editor
About Clark Consulting
For over four decades Clark Consulting has built strong
relationships with clients and insurance company partners in the
financial services industry and has created tailored Bank-Owned
Life Insurance (BOLI) programs for major financial institutions for
more than 25 years. Clark Consulting's mission is to offer
Insurance Solutions To Optimize Capital and to continue
serving the ever-changing life insurance needs of financial
institutions.
About Greenspoint Capital and The Newport
Group
Greenspoint Capital, LLC, is a newly-formed entity directly and
indirectly owned by investment funds managed by Stone Point
Capital, LLC, and an affiliate of A2 Capital Holdings, LLC.
Stone Point Capital is a financial services-focused private
equity firm based in Greenwich,
Conn. The firm has raised and managed six private equity
funds - the Trident Funds - with aggregate committed capital of
approximately USD 13 billion.
Investment funds managed by Stone Point Capital own a controlling
interest in The Newport Group (Newport). Newport is one of the
leading independent retirement service companies in the United States. Newport works closely with
advisors to provide employers with a complete array of retirement
solutions, corporate insurance services, and consulting services.
Together with its affiliate, Verisight, Inc., the firm has
approximately 1,000 associates across the nation, more than 9,500
plans with over 975,000 plan participants, and services more than
USD 120 billion of corporate client
assets.
Note: Aegon USA, LLC is
domiciled in the United States and
an indirect, wholly owned subsidiary of Aegon N.V., headquartered
in The Hague, the
Netherlands.
DISCLAIMERS
Forward-looking statements
The statements contained in this document that are not
historical facts are forward-looking statements as defined in the
US Private Securities Litigation Reform Act of 1995. The following
are words that identify such forward-looking statements: aim,
believe, estimate, target, intend, may, expect, anticipate,
predict, project, counting on, plan, continue, want, forecast,
goal, should, would, is confident, will, and similar expressions as
they relate to Aegon. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that
are difficult to predict. Aegon undertakes no obligation to
publicly update or revise any forward-looking statements. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which merely reflect company expectations at the time
of writing. Actual results may differ materially from expectations
conveyed in forward-looking statements due to changes caused by
various risks and uncertainties. Such risks and uncertainties
include but are not limited to the following:
- Changes in general economic conditions, particularly in
the United States, the Netherlands and the United Kingdom;
- Changes in the performance of financial markets, including
emerging markets, such as with regard to:
- The frequency and severity of defaults by issuers in Aegon's
fixed income investment portfolios;
- The effects of corporate bankruptcies and/or accounting
restatements on the financial markets and the resulting decline in
the value of equity and debt securities Aegon holds; and
- The effects of declining creditworthiness of certain private
sector securities and the resulting decline in the value of
sovereign exposure that Aegon holds;
- Changes in the performance of Aegon's investment portfolio and
decline in ratings of Aegon's counterparties;
- Consequences of a potential (partial) break-up of the
euro;
- The frequency and severity of insured loss events;
- Changes affecting longevity, mortality, morbidity, persistence
and other factors that may impact the profitability of Aegon's
insurance products;
- Reinsurers to whom Aegon has ceded significant underwriting
risks may fail to meet their obligations;
- Changes affecting interest rate levels and continuing low or
rapidly changing interest rate levels;
- Changes affecting currency exchange rates, in particular the
EUR/USD and EUR/GBP exchange rates;
- Changes in the availability of, and costs associated with,
liquidity sources such as bank and capital markets funding, as well
as conditions in the credit markets in general such as changes in
borrower and counterparty creditworthiness;
- Increasing levels of competition in the United States, the Netherlands, the United Kingdom and emerging markets;
- Changes in laws and regulations, particularly those affecting
Aegon's operations, ability to hire and retain key personnel, the
products Aegon sells, and the attractiveness of certain products to
its consumers;
- Regulatory changes relating to the insurance industry in the
jurisdictions in which Aegon operates;
- Changes in customer behavior and public opinion in general
related to, among other things, the type of products also Aegon
sells, including legal, regulatory or commercial necessity to meet
changing customer expectations;
- Acts of God, acts of terrorism, acts of war and pandemics;
- Changes in the policies of central banks and/or
governments;
- Lowering of one or more of Aegon's debt ratings issued by
recognized rating organizations and the adverse impact such action
may have on Aegon's ability to raise capital and on its liquidity
and financial condition;
- Lowering of one or more of insurer financial strength ratings
of Aegon's insurance subsidiaries and the adverse impact such
action may have on the premium writings, policy retention,
profitability and liquidity of its insurance subsidiaries;
- The effect of the European Union's Solvency II requirements and
other regulations in other jurisdictions affecting the capital
Aegon is required to maintain;
- Litigation or regulatory action that could require Aegon to pay
significant damages or change the way Aegon does business;
- As Aegon's operations support complex transactions and are
highly dependent on the proper functioning of information
technology, a computer system failure or security breach may
disrupt Aegon's business, damage its reputation and adversely
affect its results of operations, financial condition and cash
flows;
- Customer responsiveness to both new products and distribution
channels;
- Competitive, legal, regulatory, or tax changes that affect
profitability, the distribution cost of or demand for Aegon's
products;
- Changes in accounting regulations and policies or a change by
Aegon in applying such regulations and policies, voluntarily or
otherwise, may affect Aegon's reported results and shareholders'
equity;
- The impact of acquisitions and divestitures, restructurings,
product withdrawals and other unusual items, including Aegon's
ability to integrate acquisitions and to obtain the anticipated
results and synergies from acquisitions;
- Catastrophic events, either manmade or by nature, could result
in material losses and significantly interrupt Aegon's business;
and
- Aegon's failure to achieve anticipated levels of earnings or
operational efficiencies as well as other cost saving and excess
capital and leverage ratio management initiatives.
Further details of potential risks and uncertainties affecting
Aegon are described in its filings with the Netherlands Authority
for the Financial Markets and the US Securities and Exchange
Commission, including the Annual Report. These forward-looking
statements speak only as of the date of this document. Except as
required by any applicable law or regulation, Aegon expressly
disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained
herein to reflect any change in Aegon's expectations with regard
thereto or any change in events, conditions or circumstances on
which any such statement is based.
Aegon's roots go back more than 150 years - to the first half of
the nineteenth century. Since then, Aegon has grown into an
international company, with businesses in more than 20 countries in
the Americas, Europe and
Asia. Today, Aegon is one of the
world's leading financial services organizations, providing life
insurance, pensions and asset management. Aegon's purpose is to
help people take responsibility for their financial future. More
information: aegon.com.
Media relations
Dick Schiethart
+31(0)70-344-8821
gcc@aegon.com
Investor relations
Willem van den Berg
+31(0)70-344-8405
ir@aegon.com
PRN NLD
SOURCE Aegon N.V.