Aegon N.V. (AGN.L,AEG) announced it has reached an agreement with Wilton Re to sell its Canadian operations for C$600 million. The company expects the deal to result in a book loss of approximately C$1.2 billion.
"We continually review the performance of our businesses to ensure that they support our ambition to become a leader in our chosen markets. We have concluded that our Canadian life insurance business does not support that goal," said Alex Wynaendts, CEO of Aegon.
Aegon will earmark the proceeds of the transaction to further reduce outstanding debt through the redemption of the US$500 million 4.625% senior bond, due December 2015. The company said the combination of the divestment and the non-refinancing of the bond will improve its return on equity by 40 basis points, while reducing net underlying earnings by less than 1%.
For comments and feedback contact: editorial@rttnews.com
Business News