AEGON Sells Dutch Funeral Insurance Business
THE HAGUE, The Netherlands, February 2 /PRNewswire-FirstCall/ -- AEGON announces the sale of its funeral insurance business in the Netherlands to Dutch investment firm Egeria for an amount of EUR 212 million. The sale is the result of AEGON's ongoing portfolio review of its businesses, as announced in June 2008. The sale of its subsidiary AEGON NabestaandenZorg will have a positive effect on AEGON's excess capital position.
The purpose of the sale is in line with AEGON's strategy to ensure greater focus to its portfolio of products in the Netherlands. "We continue to look at our businesses to ensure that they are a good fit with our strategy," said Marco Keim, the member of AEGON's Management Board responsible for the Netherlands. "Our objective is to have an effective range of products so that we can meet our customers' needs in the best way possible. Above all, we want to focus on what our customers want in the key areas life and non-life insurance, pensions, savings and investments. Furthermore, we are pleased that the employees of AEGON NabestaandenZorg will be in good hands."
Under the agreement, the nineteen employees affected by the sale will retain their jobs, as well as maintain similar employment conditions. The company will continue its operations under the name 'AXENT'. AEGON's sale of its funeral insurance business will not in any way affect the company's current policyholders.
"Given AEGON NabestaandenZorg's excellent team, we have every confidence that we can build on the solid foundation they have established," said Hans Croes, General Manager of AXENT. "We are convinced of the opportunities to further develop AXENT as a leading market player. AXENT is an independent, decisive and flexible organization, and we will continue to create value for our policyholders, employees and intermediaries. Simplicity and transparency remain our focus and preoccupation."
In 2009, AEGON's funeral insurance business generated approximately EUR 70 million*) in gross written premiums.
The sale agreement is subject to the consultation of AEGON's Central Works Council, in addition to the approvals of the relevant regulatory authorities.
*) Unaudited
About AEGON
As an international life insurance, pension and investment company based in The Hague, AEGON has businesses in over twenty markets in the Americas, Europe and Asia. AEGON companies employ approximately 29,000 people and have over 40 million customers across the globe.
Key figures - EUR Q3 2009 Full year 2008
Underlying earnings before tax 351 million 1.6 billion
New life sales 484 million 2.6 billion
Gross deposits 6.8 billion 40.8 billion
Revenue generating investments
(end of period) 354 billion 332 billion
Forward-looking statements
The statements contained in this press release 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 our company. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. We undertake 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 our fixed
income investment portfolios; and
- 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 we hold;
- The frequency and severity of insured loss events;
- Changes affecting mortality, morbidity and other factors that may
impact the profitability of our insurance products;
- 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;
- Increasing levels of competition in the United States, the Netherlands,
the United Kingdom and emerging markets;
- Changes in laws and regulations, particularly those affecting our
operations, the products we sell, and the attractiveness of certain
products to our consumers;
- Regulatory changes relating to the insurance industry in the
jurisdictions in which we operate;
- Acts of God, acts of terrorism, acts of war and pandemics;
- Effects of deliberations of the European Commission regarding the aid
we received from the Dutch State in December 2008;
- Changes in the policies of central banks and/or governments;
- Lowering of one or more of our debt ratings issued by recognized rating
organizations and the adverse impact such action may have on our
ability to raise capital and on our liquidity and financial condition;
- Lowering of one or more of insurer financial strength ratings of our
insurance subsidiaries and the adverse impact such action may have on
the premium writings, policy retention, profitability of its insurance
subsidiaries and liquidity;
- Litigation or regulatory action that could require us to pay
significant damages or change the way we do business;
- Customer responsiveness to both new products and distribution channels;
- Competitive, legal, regulatory, or tax changes that affect the
distribution cost of or demand for our products;
- The impact of acquisitions and divestitures, restructurings, product
withdrawals and other unusual items, including our ability to integrate
acquisitions and to obtain the anticipated results and synergies from
acquisitions;
- Our failure to achieve anticipated levels of earnings or operational
efficiencies as well as other cost saving initiatives; and
- The impact our adoption of the International Financial Reporting
Standards may have on our reported financial results and financial
condition.
Further details of potential risks and uncertainties affecting the company are described in the company's filings with Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report on Form 20-F. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the company 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 the company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Contact information
Media relations
AEGON N.V.
Dick Schiethart
+31(0)70-344-8821
[email protected]
AEGON The Netherlands
Debora de Laaf
+31(0)70-344-8730
[email protected]
Investor relations
Gerbrand Nijman
+31(0)70-344-8305
+1877-548-9668 - toll free USA only
[email protected]
http://www.aegon.com
PRN NLD
SOURCE AEGON N.V.
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