Skip to main content
Home
  • About us
    • Who we are
      • Our history
      • Our customers
      • Our brand
      • Art at Aegon
    • What we do
      • Our businesses
      • Our strategy
      • Integrated Annual Report
    • Governance
      • Executive Board
      • Management Board
      • Supervisory Board
      • Compliance
      • Governance documents
  • Investors
    • General
      • Analyst consensus
      • Annual reports
      • Financial calendar
      • Financial results
      • Aegon and IFRS 17
      • Aegon NL and a.s.r.
      • Presentations archive
    • Capital & liquidity
      • About debt programs
      • Debt program Aegon N.V.
      • Debt program Aegon Bank N.V.
      • Dividend
      • Ratings
      • Share buyback program
    • Shareholders & AGM
      • Annual General Meeting
      • Extraordinary General Meeting
      • Retail shareholders
      • Share price tool
      • Contact investor relations
  • Newsroom
    • News
      • News Updates
      • Press releases Aegon N.V.
      • Press releases Aegon Bank N.V.
    • Media relations
      • Contact media relations
      • Media kit
  • Sustainability
    • Focus themes
      • Climate change
      • Inclusion & diversity
    • Our approach
      • Ambition & governance
      • Commitments, ratings & recognition
      • Reports & policies library
    • Stakeholder value
      • Responsible investment
      • Responsible tax
      • Community investments
      • Government & policy affairs
      • Human rights
      • Responsible procurement
      • Customer experience
      • Engaged workforce
  • Careers
  • Aegon country websites

    Select another Aegon website from the list of links below.
    • country flag
      Aegon Poland
    • country flag
      Aegon Life (India)
    • country flag
      Transamerica (USA)
    • country flag
      Aegon Spain
    • country flag
      Mongeral Aegon (Brazil)
    • country flag
      Aegon Asset Management
    • country flag
      Aegon THTF (China)
    • country flag
      Aegon Romania
    • country flag
      Aegon United Kingdom
    • country flag
      Aegon The Netherlands
  • Filters
    Article Type

Transamerica settles universal life litigation

October 04, 2018, 8:00 CEST
2 minutes

Breadcrumb

  1. Press releases Aegon N.V.

Aegon’s subsidiary Transamerica today announces an agreement that would resolve litigation challenging certain monthly deduction rate adjustments on universal life insurance policies in the United States. This settlement for an amount of USD 195 million removes the uncertainty of ongoing litigation for the company and its customers.

Transamerica's universal life insurance policies permit the company to adjust monthly deduction rates up to a contractually guaranteed maximum, subject to certain conditions. Plaintiffs in lawsuits challenged increases to monthly deduction rates on approximately 70,000 universal life policies that were enacted in 2015 and 2016. Transamerica implemented these adjustments, necessitated by low long-term interest rates, changes in expectations as to future mortality experience, and other factors, and in accordance with the policies' contractual terms.

The agreement creates a settlement class of all Transamerica policyholders that were subject to the 2015 and 2016 monthly deduction rate adjustments. The settlement will be filed with the United States District Court for the Central District of California on or about October 4, 2018, and is subject to court approval. Impacted policyholders will receive notice approved by the court with details of the settlement.

While policyholders may choose to opt out, policyholders who participate in the settlement will receive a monetary award – either through the crediting to policy account values for policies in force or in cash for certain policies no longer in force – and protection against new monthly deduction rate increases on their policies for five years. In turn, these class members will release all claims related to or arising out of the monthly deduction rate increases. This will allow Transamerica to retain its monthly deduction rate increases.

Under the terms of the settlement agreement, Transamerica will pay the settlement amount into a common fund, and absorb additional costs for attorneys' fees, class notice and administration. The capital and pre-tax IFRS impacts are expected to be in the range of the amount of the settlement.

Press release PDFs

English version
PDF 254.32 KB
Nederlandse versie
PDF 238.10 KB
  • Global
  • Dutch

Contact

  • Media relations
  • Investor relations
  • About us
    • Who we are
    • What we do
    • Governance
    • Contact Aegon
  • Investors
    • General
    • Capital & liquidity
    • Shareholders & AGM
  • Newsroom
    • News
    • Media relations
  • Sustainability
    • Our focus themes
    • Our approach
    • Stakeholder value
  • Careers
    • Vacancy search
    • Working at Aegon
Site logo
  • Privacy statement
  • Cookie statement
  • Accessibility
  • Disclaimer
  • General terms and conditions
Aegon ©2023