Insurance group Aegon on Thursday announced that it is to launch an equity issue to raise up to €1bn to pay back part of the €3bn state aid it received last year as part of the government’s rescue package for financial institutions hit by the economic crisis.
In a statement Aegon CEO Alex Wynaendts said: ‘It has been our intention to repay the €3bn to the Dutch government at the earliest opportunity, provided it is both feasible and responsible to do so. Our decision to issue equity in the amount of up to €1bn is the first step towards the goal of full repayment.
‘Aegon’s current excess capital position of €3.5bn gives us the flexibility to deploy capital in the business and puts us in a better position to work towards the goal of full repayment of the outstanding capital within the terms of our agreement with the Dutch state.’
The company said it intends to make the first repayment by the end of this year. The move requires formal approval by the central bank.
Ageon also announced its second quarter results on Thursday. It booked a net loss of €161m in the second quarter of this year, including one-off losses of €385m from its sale of Taiwanese life activities and a €393m write-off on assets, particularly on the US housing market. Analysts had expected a small profit, according to the media.
The company booked a profit of €276m in the second quarter of last year but the latest result is an improvement on the first quarter when it posted a loss of €173m.
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