Aegon calls USD 1 billion in perpetual capital securities
October 24 2019 - 8:30AM
Business Wire
Aegon today announces that it is exercising its right to redeem
the USD 1 billion perpetual capital securities with a coupon of
6.375% issued in 2005. The redemption of these grandfathered Tier 1
securities will be effective December 15, 2019, when the principal
amount of USD 1 billion will be repaid together with any accrued
and unpaid interest.
The securities (ISIN code: NL0000021541, CUSIP code: 007924301)
are currently listed on the New York Stock Exchange with symbol
AEH. This listing will be terminated following the redemption of
the securities.
A notice of redemption will be
sent to all currently registered holders of the perpetual capital
securities by the trustee, The Bank of New York Mellon. The Paying
Agent is Citibank N.A., 480 Washington Boulevard, 30th Floor,
Jersey City, New Jersey 07310.
This press release does not
constitute a notice of redemption of the perpetual capital
securities.
About Aegon
Aegon’s roots go back 175 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 achieve a lifetime of financial security. More
information on aegon.com.
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, could, 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 and/or governmental 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 public sector securities and the resulting decline in
the value of government exposure that Aegon holds;
- Changes in the performance of Aegon’s investment portfolio and
decline in ratings of Aegon’s counterparties;
- Consequences of an actual or potential break-up of the European
monetary union in whole or in part;
- Consequences of the anticipated exit of the United Kingdom from
the European Union and potential consequences of other European
Union countries leaving the European Union;
- 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,
taxation of Aegon companies, the products Aegon sells, and the
attractiveness of certain products to its consumers;
- Regulatory changes relating to the pensions, investment, and
insurance industries in the jurisdictions in which Aegon
operates;
- Standard setting initiatives of supranational standard setting
bodies such as the Financial Stability Board and the International
Association of Insurance Supervisors or changes to such standards
that may have an impact on regional (such as EU), national or US
federal or state level financial regulation or the application
thereof to Aegon, including the designation of Aegon by the
Financial Stability Board as a Global Systemically Important
Insurer (G-SII);
- Changes in customer behavior and public opinion in general
related to, among other things, the type of products 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, operational risks such as system disruptions or
failures, security or data privacy breaches, cyberattacks, human
error, failure to safeguard personally identifiable information,
changes in operational practices or inadequate controls including
with respect to third parties with which we do business 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, which may affect Aegon’s reported results, shareholders’
equity or regulatory capital adequacy levels;
- Aegon’s projected results are highly sensitive to complex
mathematical models of financial markets, mortality, longevity, and
other dynamic systems subject to shocks and unpredictable
volatility. Should assumptions to these models later prove
incorrect, or should errors in those models escape the controls in
place to detect them, future performance will vary from projected
results;
- 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
cash and leverage ratio management initiatives.
This document contains
information that qualifies, or may qualify, as inside information
within the meaning of Article 7(1) of the EU Market Abuse
Regulation (596/2014). 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191024005493/en/
Media relations Dick Schiethart +31(0) 70 344 8821
dick.schiethart@aegon.com
Investor relations Jan Willem Weidema +31(0) 70 344 8028
janwillem.weidema@aegon.com
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