Dutch insurer Aegon has agreed to offload part of the stake it owns in US life reinsurance business to French reinsurer SCOR.
The deal is part of Aegon’s strategy to lower the amount of capital allocated to its run-off businesses.
Go deeper with GlobalData
The deal includes around half of the life reinsurance business that was retained by Transamerica following a stake sale to SCOR in 2011. Under the arrangement, Transamerica life subsidiaries would reinsure nearly $750m of liabilities to SCOR.
Aegon expects the deal to lead to a pre-tax loss of about $125m, which the company will report in other charges in the fourth quarter 2017 results.
“It is expected that the transaction has a one-time benefit of approximately USD 75 million on Transamerica’s capital position and a slightly positive effect on recurring capital generation,” the Dutch insurer stated.
As part of the transaction, Aegon will also dissolve a related captive insurance firm to fund redundant reserves.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
