Aegon NV (AEG) Financial News - Aegon sells Guardian Life to Cinven
Aegon NV (AEG)
Aegon sells Guardian Life to Cinven
2011-08-17 16:10:52Quote: AMSTERDAM |Tue Aug 16, 2011 3:43am EDT AMSTERDAM (Reuters) - Dutch insurer Aegon NV (AEGN.AS) (AEG.N) agreed to sell its U.K.-based Guardian Life unit to European buyout firm Cinven CINV.UL for 275 million pounds ($451 million), confirming an earlier Reuters report.Aegon, which received financial aid from the Dutch state during the 2008 credit crisis, has been steadily winding down and selling operations to repay the state, cut costs and focus on new markets.The Dutch insurer recently completed the sale of its Transamerica Reinsurance operations to French reinsurer Scor (SCOR.PA) for about $900 million. A source told Reuters earlier this month that Aegon was planning to sell its Guardian Life unit to Cinven."Consistent with actions over the past three years to dispose of, or run-off, certain businesses deemed non-core, Aegon has concluded that managing the closed business of Guardian companies no longer fits with our strategic objectives," said Jan Nooitgedagt, Aegon's chief financial officer said in a statement on Tuesday.The deal is seen as marking the first step in a project to consolidate life funds closed to new customers, a person familiar with the matter told Reuters earlier this month.The acquisition could see Cinven compete against the likes of Swiss Re (SRENH.VX), Phoenix Life PNXPL.UL and Chesnara (CSN.L) for other closed-life portfolios in the future.Many small life insurers have closed their doors to new customers because they do not have enough capital to underpin continued growth, focusing instead on profitably managing their "back book" of existing policies.This has opened up opportunities for consolidators who make money by buying up blocks of closed life funds and squee...
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