AMSTERDAM: Aegon NV, the Dutch owner of US insurer Transamerica Corp, divested the final ￡3 billion (US$4.4 billion) of annuities from its UK portfolio to Legal & General Group PLC (L&G).
The transaction, which covers 27,000 policyholders, is to release another ￡275 million of capital that had been set aside under Solvency II regulations, the company said in a statement yesterday. Aegon is to initially reinsure the liabilities to L&G followed by a so-called Part VII transfer that is to boost its capital ratio by about 20 percentage points.
“The divestment is an important step in the strategic repositioning of our business in the UK,” Aegon CEO Alex Wynaendts said in the statement.
