Aegon May Sell Transamerica Unit

Aegon is exploring options for its Transamerica life reinsurance business in the U.S. and plans to restructure its U.K. operations.
Author:
Publish date:

AMSTERDAM (

TheStreet

) --

Aegon

(AEG) - Get Report

said Tuesday it is exploring options for its Transamerica life reinsurance business in the U.S. and plans to restructure its U.K. operations.

Aegon said it will look for a "suitable buyer" for the Transamerica business. Transamerica is the third-largest life reinsurer in the U.S., and seventh globally, according to company materials, the

Associated Press

reports.

Aegon, in a statement Tuesday said it "believes that, over the longer term, there is only a limited strategic fit between Transamerica Reinsurance and Aegon's core activities."

The company said its priority is to repay the remaining €2 billion ($2.5 billion) of capital it received from the Dutch government at the height of the financial crisis in 2008.

As for its U.K. businesses, Aegon said it would cut 25% of costs by 2011 and withdraw from the "bulk annuities" market.

Aegon said it wants to focus on just three businesses: life insurance, pension and asset management.

-- Reported by Joseph Woelfel in New York.

Get more stock ideas and investing advice on our sister site,

Stockpickr.com.

AMSTERDAM (

TheStreet

) --

Aegon

(AEG) - Get Report

said Tuesday it is exploring options for its Transamerica life reinsurance business in the U.S. and plans to restructure its U.K. operations.

Aegon said it will look for a "suitable buyer" for the Transamerica business, which is the third-largest life reinsurer in the U.S., and seventh globally, according to company materials, the

Associated Press

reports.

Aegon, in a statement Tuesday said it "believes that, over the longer term, there is only a limited strategic fit between Transamerica Reinsurance and Aegon's core activities."

The company said its priority is to repay the remaining €2 billion ($2.5 billion) of capital it received from the Dutch government at the height of the financial crisis in 2008.

As for its U.K. businesses, Aegon said it would cut 25% of costs by 2011 and withdraw from the "bulk annuities" market.

Aegon said it wants to sharpen its focus on the core activities of life insurance, pension and asset management.

-- Reported by Joseph Woelfel in New York.

Get more stock ideas and investing advice on our sister site,

Stockpickr.com.

Copyright 2010 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.