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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Aegon Ltd | NYSE:AEG | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 6.17 | 0 | 10:22:39 |
THE HAGUE, The Netherlands, April 11, 2016 /PRNewswire/ --
Aegon announces the sale of two thirds of its UK annuity portfolio to Rothesay Life. The transaction is consistent with the company's ambition to free up capital from non-core businesses. Under the terms of the agreement, Aegon will reinsure GBP 6 billion of liabilities to Rothesay Life, followed by a Part VII transfer. The pro forma Solvency II ratio per end-2015 for Aegon's operations in the United Kingdom increases to an estimated ~155% following the reinsurance transaction and ~165% following the Part VII transfer. Aegon is exploring options to also divest the remainder of its UK annuity portfolio.
"I am very pleased that we have reached an agreement with Rothesay Life," said Alex Wynaendts, CEO of Aegon. "This is an important step in the process to fully divest our UK annuity portfolio, and will enable us to focus on our fast-growing platform in the UK. We are confident that this transaction is also in the best interests of our annuity customers, as Rothesay Life is an established and respected specialist provider in the UK annuity market."
Aegon has not been an active player in the UK annuity market since 2010. By selling the majority of the annuity portfolio, Aegon will be able to focus on its platform which enables workplace savers and consumers to build their savings across their working lives and then manage an income in retirement with the support of a financial adviser or directly online.
As a result of the transaction, the benefit in the Solvency II own funds from transitional measures for Aegon's UK annuity portfolio will be reduced. After the completion of the transaction, Aegon intends to upstream excess capital to the holding in line with Aegon's capital management policy for its units.
Following the transaction, Aegon expects annual operational free cash flows from its UK operations to be reduced by approximately GBP 35 million (EUR 43 million). The expected impact of the transaction on 2016 underlying earnings before tax is approximately GBP (20) million (EUR (25) million). The reinsurance transaction is expected to result in an IFRS loss of approximately GBP 30 million (EUR 37 million) to be reported in other charges in the second quarter of 2016.
To ensure a smooth transition for its customers, Aegon and Rothesay Life will put a migration plan in place in which the administration of the annuity portfolio will be executed by Aegon until the completion of the Part VII transfer.
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:
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 170 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: aegon.com.
Media relations
Debora de Laaf
+31(0)70-344-8730
gcc@aegon.com
Investor relations
Willem van den Berg
+31(0)70-344-8405
ir@aegon.com
PRN NLD
SOURCE Aegon N.V.
Copyright 2016 PR Newswire
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