Aegon closes US run-off business sale to Wilton Re
Netherland-based insurer Aegon has completed its divestment transaction with Wilton Re, a company focused on the North American life insurance market.
In May, Aegon announced its agreement with Wilton Re to sell its two largest US run-off businesses, the pay-out annuity business and the Bank Owned / Corporate Owned Life Insurance business (BOLI/COLI).
The company stated that the transaction was part of its strategic objective to reduce the amount of capital allocated to its run-off businesses.
Under the terms of the agreement, Aegon's Transamerica life subsidiaries will reinsure $14 billion of liabilities to affiliates of Wilton Re US Holding. The transaction and related management actions are expected to result in a capital release of approximately $700 million (€630 million) in 2017.
According to the statement, the capital released is expected to be upstreamed during the second half of 2017 to the holding, which is expected to improve Transamerica's return on capital by approximately 60 basis points, and is estimated to improve Aegon's Group Solvency II ratio by approximately 6 percentage points.
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