May 22, 2017 / 5:55 AM / 3 months ago

BRIEF-Aegon to divest majority of US run-off businesses

May 22 (Reuters) - AEGON NV:

* AEGON TO DIVEST MAJORITY OF US RUN-OFF BUSINESSES

* HAS AGREED TO SELL ITS TWO LARGEST US RUN-OFF BUSINESSES, PAYOUT ANNUITY BUSINESS AND BANK OWNED / CORPORATE OWNED LIFE INSURANCE BUSINESS (BOLI/COLI), TO WILTON RE

* UNDER TERMS OF AGREEMENT, AEGON'S TRANSAMERICA LIFE SUBSIDIARIES WILL REINSURE USD 14 BILLION OF LIABILITIES TO AFFILIATES OF WILTON RE US HOLDING INC

* TRANSACTION AND RELATED MANAGEMENT ACTIONS ARE EXPECTED TO RESULT IN A CAPITAL RELEASE OF APPROXIMATELY USD 700 MILLION (EUR 630 MILLION) IN 2017.

* AS A RESULT OF ACTIONS ANNOUNCED TODAY, AEGON'S GROUP SOLVENCY II RATIO IS ESTIMATED TO IMPROVE BY APPROXIMATELY 6%-POINTS IN SECOND HALF OF 2017

* AEGON EXPECTS ANNUAL CAPITAL GENERATION FROM ITS US OPERATIONS TO BE REDUCED BY APPROXIMATELY USD 30 MILLION (EUR 27 MILLION) FOLLOWING TRANSACTION

* AFTER COMPLETION OF TRANSACTION AND RELATED MANAGEMENT ACTIONS, CAPITAL RELEASED FROM THIS TRANSACTION IS EXPECTED TO BE UPSTREAMED TO HOLDING

* AEGON ANTICIPATES REINSURANCE TRANSACTION WILL RESULT IN A BOOK LOSS OF APPROXIMATELY USD 300 MILLION (EUR 270 MILLION), TO BE REPORTED IN OTHER CHARGES AT TIME OF CLOSING

* TRANSACTION IS SUBJECT TO NORMAL REGULATORY APPROVALS AND IS EXPECTED TO CLOSE IN SUMMER OF 2017 Source text for Eikon: Further company coverage: (Gdynia Newsroom)

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