Aegon: transfer agreement with TCS for US unit
(CercleFinance.com) - Aegon's US subsidiary Transamerica has entered into an agreement with Tata Consultancy Services (TCS) that will see the consulting firm administer the company's insurance and annuity business lines.
The agreement is expected to lead to annual run-rate expense savings for Aegon of approximately 70 million dollars initially, growing to 100 million dollars over time, the Dutch insurer said.
At this time, Aegon will have to record transition and conversion charges estimated at approximately 280 million dollars.
Under the terms of the deal, TCS will administer Transamerica's life insurance, annuity, supplementary health insurance and workplace voluntary benefits products and take on the administration of over 10 million policies.
TCS is already working with six of the world's top 10 insurance companies, Aegon said.
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