Aegon: to merge US units to strengthen capital
(CercleFinance.com) - Dutch insurer Aegon is merging two of its US entities to simplify its legal structure, which will also help strengthen the group's capital position and balance sheet in the United States, the company said on Tuesday.
Effective from 1 October, Aegon will merge its Arizona-based variable annuity captive with Transamerica Life Insurance Company (TLIC).
The decision follows changes to the existing US capital framework for variable annuities made by the National Association of Insurance Commissioners (NAIC), Aegon said.
The merger is expected to result in a 50%-point benefit to the US risk-based capital ratio, or approximately a 1 billion dollar one-off capital generation as a result of the release of reserves and diversification benefits, the group said.
In the end, the beneficial impact of the merger on Aegon's group solvency II ratio is expected to largely offset the impact of US tax reform in the second half of 2018, Aegon added.
Its Euronext Amsterdam-listed shares were up almost 3% on this news.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Effective from 1 October, Aegon will merge its Arizona-based variable annuity captive with Transamerica Life Insurance Company (TLIC).
The decision follows changes to the existing US capital framework for variable annuities made by the National Association of Insurance Commissioners (NAIC), Aegon said.
The merger is expected to result in a 50%-point benefit to the US risk-based capital ratio, or approximately a 1 billion dollar one-off capital generation as a result of the release of reserves and diversification benefits, the group said.
In the end, the beneficial impact of the merger on Aegon's group solvency II ratio is expected to largely offset the impact of US tax reform in the second half of 2018, Aegon added.
Its Euronext Amsterdam-listed shares were up almost 3% on this news.
Copyright (c) 2018 CercleFinance.com. All rights reserved.