AGER Bermuda deconsolidates from Athene
AGER announces details of capital raise
AGER Bermuda, the holding company of the European operations of Athene Holding, is to acquire Aegon’s Dublin-based subsidiary Aegon Ireland as it moves to increase its financial flexibility.
"Aegon continuously reviews its portfolio of businesses in order to ensure that they fit the wider strategy of the group, and we have come to the conclusion to divest our business in Ireland," said Alex Wynaendts, CEO of Aegon. "We believe this change in ownership is in the best interest of all stakeholders concerned, and I would like to thank everyone at Aegon Ireland for their contribution to the company."
The proceeds from the divestment of Aegon Ireland, a provider of unit-linked guarantee and offshore bond products predominantly in the UK, will amount to 81 percent of the own funds at the time of closing. Solvency II own funds of Aegon Ireland were approximately £200 million (€220 million) as of June 30, 2017.
According to the company, the transaction will further optimise Aegon's portfolio of businesses and increase its financial flexibility. It added that Aegon's group solvency ratio will improve by an estimated 2 percentage-points as a result of the transaction.
The transaction is expected to close by the first quarter of 2018, subject to regulatory approvals.
Based on the book value as of June 30, 2017, the book loss is expected to amount to approximately £115 million (€125 million), subject to certain closing and market conditions, and will be reported in other charges.
Deepak Rajan, executive vice president at AGER, commented: "The successful capital raise by AGER in April 2017 has laid the foundation for our growth in Europe. This transaction is another important step toward our goal of becoming the premier European run-off consolidator and life reinsurance partner.
"We see significant opportunities with Aegon Ireland. This acquisition gives us a strong platform to accumulate Irish annuities, to create a reinsurance hub in Europe, and to provide services to all AGER group companies including our existing German operations. A presence in Ireland has been part of our strategy from the beginning and Aegon Ireland is a perfect fit for our growth plans."
Aegon, Aegon Ireland, Acquisition, M&A, AGER Bermuda, Athene Holding, Europe, Bermuda, Dublin, UK