Aegon Seeks $1 Billion in U.S. Funds: Report
Dutch insurer
Aegon
has applied for more than $1 billion in U.S. government support and may buy a small U.S. thrift company to be eligible for the funds, the company said Tuesday,
Reuters
reports.
"This is part of our strategy to ensure Aegon has the strongest capital position possible," said Aegon spokesman Greg Tucker, adding that the support would equate to about 1% of Aegon's $125 billion of U.S. assets, according to
Reuters
.
Aegon, which received 3 billion euros ($3.8 billion) in capital support from the Dutch government last month, was not experiencing liquidity problems, and would use the U.S. money for its U.S. operations, Tucker said.
The Dutch company, which owns U.S. life insurer Transamerica and generates three-quarters of its operating profit in the U.S., may buy a thrift company -- possibly Maryland-based Suburban Federal Savings Bank --to be eligible for the support, the spokesman said.
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Aegon's plans are similar to those of insurers
Hartford
(HIG) - Get Hartford Financial Services Group Inc. (The) Report
,
Genworth
(GNW) - Get Genworth Financial Inc Report
and
Lincoln National
(LNC) - Get Lincoln National Corporation Report
EXCHANGE="NYSE" PRIMARY="NO"/> who are all planning to buy small savings and loans and apply for federal support.
Aegon expects a decision from the U.S. authorities before the end of the year, and any deal to buy a U.S. thrift company also would be concluded within that period, Tucker said.
This article was written by a staff member of TheStreet.com.
