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Aegon Repurchases Securities from the Dutch State

March 16, 2011

Aegon has repurchased a further EUR 750 million of the EUR 3 billion in core capital that the Dutch State provided at the peak of the financial crisis in 2008.

Including the most recent transaction, the company has bought back a total of EUR 2.25 billion to date. Aegon remains fully committed to repurchasing the remaining EUR 750 million before the end of June 2011.

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 announced that it would restrict its support to companies that were fundamentally sound and viable.

In exchange for its capital support, the Dutch government received securities. These securities are gradually being repurchased 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 to be paid by Aegon amounts to more than EUR 1 billion.

In 2010, Aegon received final approval from the European Commission for the capital support it had received in 2008. 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

To date, Aegon has made the following repurchases:

  • 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

The remainder - EUR 750 million in core capital, plus premium - will be repurchased by the end of June 2011, market conditions permitting.

Press Release

You can read Aegon's press release about this transaction here.