Dutch insurance giant Aegon said Wednesday it had completed its sale of Transamerica Reinsurance to French reinsurer Scor for more than one billion dollars, a deal announced in April.
“Aegon yesterday (Tuesday) completed the divestment of its life reinsurance business Transamerica Reinsurance to Scor, following final approval of relevant regulatory authorities,” Aegon said in a statement issued in The Hague.
The deal came to a total of $1.4 billion (974 million euros) after tax, with $900 million paid in cash and a further $500 million in released capital, Aegon said. Aegon added under the agreement it would sell its global life reinsurance activities with the exception of select businesses.
Earlier this year, Aegon said funds it would receive from Scor plus the released capital would allow it to complete a final 1.1 billion euro payback to the Dutch state as part of financial crisis measures in 2008.
It announced however on June 15 that all outstanding payments to the state to a total value of 4.1 billion euros had been completed.
“With the repayment completed, the company will now focus on carrying out its strategy to deliver sustainable growth with an improved risk-return profile,” it said at the time.
The Charlotte, North Carolina-based Transamerica Reinsurance employs 451 people. It realised underlying earnings before tax of $105 million in 2010 on $2.2 billion of gross premiums.
The Hague, Aug 10, 2011 (AFP)