Aegon completes sale of Taiwanese life insurance activities
Aegon has completed the sale of its Taiwanese life insurance business to Zhongwei Company*. The entering by the parties into an agreement for the sale was originally announced on April 22, 2009.
The decision to sell the Taiwanese life business is a result of Aegon’s strategic priorities to optimize capital allocation and returns.
The sale resulted in a total negative earnings impact of EUR 385 million in the second quarter of 2009. Aegon expects the sale of its life insurance activities in Taiwan to positively impact future earnings. The sale has no impact on Aegon’s excess capital. At the same time, the scheduled capital contributions to Aegon Taiwan will no longer be required. As a result, the transaction will have an immediate positive effect on the Group’s cash flows. In addition, the sale results in a significant decrease of the long-term interest rate exposure for Aegon, which, in turn, substantially lowers required economic capital.
* Zhongwei Company Ltd. is a holding company established and funded by a consortium led by the Chairman of Meifu Development and the President of Taiwan Glass Industry. Meifu Development is one of Taiwan’s leading property, construction and real estate management companies. Taiwan Glass Industry, listed in Taiwan, is one of the world’s largest manufacturers of glass.