Final payment to the Dutch State amounts to EUR 1.125 billion: - EUR 750 million for repurchase of 187.5 million convertible core capital securities - EUR 375 million premium
Aegon today fulfils its key objective of repurchasing all of the EUR 3 billion core capital securities issued to the Dutch State at the height of the financial crisis in 2008. The Dutch Central Bank (DNB) has given its consent to Aegon’s repurchase of EUR 750 million of core capital.
The total amount Aegon has paid to the Dutch State amounts to EUR 4.1 billion. Of this amount, EUR 3 billion covered the original issue of core capital securities, while an additional EUR 1.1 billion was paid in premium and interest. With the repayment completed, the company will now focus on carrying out its strategy to deliver sustainable earnings growth with an improved risk-return profile.
“Aegon has turned a decisive corner and is today a significantly transformed company,” said CEO Alex Wynaendts. “Over the past three years, we have implemented a broad range of strategic actions to create a more focused, cost and capital efficient organization, with a strong balance sheet and a substantially reduced risk profile. In addition, we have divested or put into run-off a number of businesses that did not meet our risk/return profile and which we concluded would not contribute to Aegon’s growth prospects. We are now in a much better position to continue to put Aegon’s considerable expertise and resources to work for our 40 million customers in Europe, the Americas and Asia.
“It has been our top priority to complete the repurchase of the capital securities issued to the Dutch State at the earliest opportunity. We are grateful to the Ministry of Finance and Dutch Central Bank for their support during the period of extreme economic turmoil and uncertainty that Aegon faced and successfully weathered. We are also grateful to our business partners and many customers for their continued confidence in Aegon. With the repayment to the Dutch State now completed, we have set our sights toward capturing the substantial opportunities for our core business of life insurance, pension and retirement services and asset management.”