Aegon N.V. today announced that it has reached an agreement with Dexia resolving a dispute over the purchase of Labouchere by Dexia in 2000.
In 2002, Dexia started legal proceedings in the District Court of Amsterdam. Aegon and Dexia have now reached an agreement pursuant to which Aegon will pay EUR 218 million to Dexia in full and final settlement. This agreement ends a dispute that otherwise could have lasted for many years and does not constitute an admission of the allegations made by Dexia.
Aegon has taken into consideration that by reaching an agreement with Dexia a significant hurdle has been removed allowing Dexia to work towards solutions for those clients of Dexia with securities leasing products who have encountered severe financial difficulties. Aegon's payment to Dexia under this agreement will be used for this purpose.
The payment will be booked by Aegon as an extraordinary item in the full year 2004 results. Net profit for the full year 2004 under Dutch Accounting Principles is expected to exceed EUR 1.6 billion. Aegon's full year 2004 results will be published on March 3, 2005.