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Aegon's Transamerica Subsidiaries To Reinsure $750 Mln Of Liabilities To SCOR

Aegon (AGN.L,AEG) announced it has agreed to divest a block of life reinsurance business to SCOR and to dissolve a related captive insurance company. Aegon's Transamerica life subsidiaries will reinsure approximately $750 million of liabilities to SCOR. Aegon said the transaction is consistent with the company's stated strategic objective to reduce the amount of capital allocated to its run-off businesses.

It is expected that the transaction has a one-time benefit of approximately $75 million on Transamerica's capital position and a slightly positive effect on recurring capital generation. The company said future underlying earnings are not affected by the transaction as earnings of this block of reinsurance business are part of run-off businesses, which are not included in underlying earnings before tax. The transaction is expected to result in a pre-tax IFRS loss of approximately $125 million and will be reported in other charges in the fourth quarter 2017 results.

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