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Daily Insurance Industry News
Thursday 18th of January 2018
October 29, 2008

Aegon taps Dutch Government rescue fund for €3bn

by Gill Montia

Story link: Aegon taps Dutch Government rescue fund for €3bn

Dutch insurer, Aegon, has reported that a rise in impairment charges and weak markets have been instrumental in the group posting a third-quarter net loss of around €350 million.

The result compares with a net profit of €541 million a year earlier.

The group, which owns US insurer, Transamerica, says it is seeking to strengthen its capital base and has secured a €3 billion injection of cash from the Dutch government.

The support will be provided from a fund set up earlier this month in response to the banking crisis, which has already been tapped by ING Groep, the Dutch banking and insurance group, for €10 billion.

In return for its share of the €20 billion pot Aegon will pay annual interest at 8.5% or above and will accommodate two government representatives on its board.

In addition, no final dividend will be paid in 2008 and board directors will forego performance related bonuses for this year.

In the UK Aegon employs around 4,500 staff, many of whom work for Scottish Equitable, its Edinburgh-based pensions, protection, investments and annuities unit.

 

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