AEGON will divest its global life reinsurance activities with the exception of select blocks of business that are to be retained by AEGON. The retained businesses with a book value of $0.4 billion comprise mainly variable annuity guarantee business.
Transamerica Re is part of AEGON, but not as a legal entity. Therefore, the acquisition includes a series of retrocession agreements from AEGON to SCOR Global Life US entities. As part of the acquisition, SCOR also will purchase from AEGON one Irish legal entity, which underwrites Transamerica Re business and will take over the operational assets and systems of Transamerica Re.
The divestment will result in a total after-tax consideration of $1.4 billion, consisting of cash proceeds of $0.9 billion with a further $0.5 billion in capital released. AEGON expects to upstream $1.1 billion to the holding company to support the repurchase of the remaining core capital securities issued to the Dutch State. AEGON has committed to repurchasing these securities by the end of June 2011.
“This transaction is consistent with our focus on AEGON’s core business and supports our aim to complete repayment to the Dutch State by the end of June,” says AEGON CEO Alex Wynaendts. “We are grateful for the continued dedication of the management and employees of Transamerica Reinsurance since announcing our intentions and are pleased to have identified a good home for this highly regarded business.”
Thanks to support from the Dutch state, Aegon endured the 2008 financial crisis, and took the 8th spot on
While SCOR didn’t make that list, it claims that through the acquisition it will become the second-largest life reinsurer in the United States.
“The acquisition of Transamerica Re’s mortality portfolio will mark a new milestone in the history of SCOR,” says Denis Kessler, chairman and CEO of SCOR SE. “This transaction relates only to biometric risks, and is fully consistent with SCOR’s strategy and risk appetite. The rebalancing of the life reinsurance book between the United States, Asia and Europe, while enlarging the Group’s footprint and significantly expanding our global franchise, will also provide additional stability to the Group.
The transaction, which consists of a number of reinsurance agreements, is subject to final approval of the relevant regulatory authorities and is expected to close in the summer of this year.
Also pending regulatory approval is the
In January, AIG and Ruen Chen Investment
Nan Shan is the largest life insurer in Taiwan by total book value, and the third-largest by total premiums, serving 4 million policyholders via a network of 24 branches, 500 agency offices, approximately 4,100 employees and more than 33,000 agents.
In October 2009, AIG had agreed to sell the company to an investor group led by Hong Kong's Primus Financial for about $2.15 billion, but the deal was later nixed by the Taiwan regulatory authority, which cited concerns over their financial capability and long-term commitment.=
