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Aegon Completes Repayment to the Dutch State

June 15, 2011

Aegon has completed final repayment of the EUR 3 billion in capital that the Dutch State provided at the peak of the financial crisis in 2008.

On June 15, 2011, Aegon repurchased the remaining EUR 750 million of securities held by the Dutch State. These securities had been issued to the Dutch State in 2008 by Aegon's largest shareholder. In exchange for the securities, Aegon received EUR 3 billion of capital.

Beginning in 2009, Aegon progressively repurchased these securities. The most recent transaction represents the company's last and final payment.

Background

In 2008, Aegon secured EUR 3 billion in core capital from the Dutch State. Aegon was one of several companies in the Dutch financial sector to which the Dutch State provided capital support. The State restricted its support to companies that were fundamentally sound and viable.

In exchange for its capital support, the Dutch government received securities. These securities were gradually bought back by Aegon.

The original terms of repayment included interest and premium charges on the core capital advanced by the Dutch State. The total interest and premium paid by Aegon amounted to EUR 1.1 billion.

The capital support that Aegon received from the Netherlands was approved by the European Commission in 2010. The Commission recognized the steps Aegon had taken to strengthen its financial position, reduce its exposure to risk in the financial markets, lower costs and optimize its core businesses – life insurance, pensions and asset management.

Progress

Aegon’s repayment was accomplished progressively:

  • November 30, 2009: EUR 1 billion in core capital, plus premium of 108 EUR million
  • August 30, 2010: EUR 500 million in core capital, plus premium of 52 EUR million
  • March 15, 2011: EUR 750 million in core capital, plus premium of 375 EUR million
  • June 15, 2011: EUR 750 million in core capital, plus premium of 375 EUR million.

Press release

Read Aegon's press release about its final repayment.