Aegon’s subsidiary, Aegon USA, has inked an agreement with Greenspoint Capital and The Newport Group to divest, its bank-owned life insurance (BOLI) distribution and servicing unit Clark Consulting, for $177.5m.

Subject to regulatory approvals, the transaction is expected to complete during the third quarter of 2015.

Aegon said the deal will enable itto further reducethe capital deployed to its run-off businesses and boost the return on capital invested. Further, it will help the company to improve its risk-return profile and capital efficiency.

Clark Consulting operates as a distinct entity within the BOLI/COLI insurance business that is presently in run-off.

With a balance of $8.5bn, Aegon said the BOLI/COLI insurance block is not part of this transaction and will continue to be serviced by Aegon’s US subsidiaries.