Aegon has agreed to sell Aegon Ireland plc to AGER Bermuda Holding Ltd., the holding company of the European operations of Athene Holding Ltd.
This transaction will further optimize Aegon's portfolio of businesses and increase its financial flexibility.
The proceeds from the divestment of Aegon Ireland, a provider of unit linked guarantee and offshore bond products predominantly in the United Kingdom, will amount to 81% of the Own Funds at the time of closing.
Solvency II ratio
Solvency II Own Funds of Aegon Ireland were approximately GBP 200 million (EUR 220 million) as of June 30, 2017. Aegon's group solvency ratio is estimated to improve by approximately 2%-points as a result of the transaction. "Aegon continuously reviews its portfolio of businesses in order to ensure that they fit the wider strategy of the group, and we have come to the conclusion to divest our business in Ireland", said Alex Wynaendts, CEO of Aegon.
"We believe this change in ownership is in the best interest of all stakeholders concerned, and I would like to thank everyone at Aegon Ireland for their contribution to the company."
Immaterial impact on underlying earnings
Based on the book value as of June 30, 2017, the book loss is expected to amount to approximately GBP 115 million (EUR 125 million), subject to certain closing and market conditions, and will be reported in Other charges. This divestment is expected to have an immaterial impact on underlying earnings before tax going forward.
The transaction is subject to normal regulatory approvals and is expected to close in the first quarter of 2018.