We’re part of the AEGON Group (AEGON N.V.), one of the world’s largest pension and life insurance groups and a strong provider of investment products.
AEGON remains well positioned to withstand the current volatility in the global financial markets. AEGON aims to maintain capital in excess of the target set by ratings agencies (Standard & Poor's rate AEGON’s main operating businesses, including AEGON Scottish Equitable, as AA) which is higher than that set by regulators.
AEGON had global revenue-generating assets of €344 billion as at 30 June 2008 and we reported a net profit of EUR 2.6 billion in 2007. You can find further details on AEGON’s robust financial strength and strong risk management approach on www.aegon.com
As we are regulated by the Financial Services Authorities, we are a member of the UK Financial Services Compensation Scheme
Additional financial buffer
On 9 October, the Dutch Government and central bank made €20 billion available to well-run and financially strong Dutch-based institutions, including banks and insurance companies. This is consistent with actions taken by other European governments in recent weeks.
AEGON N.V. has announced that it will make use of this facility via AEGON’s Association and has secured an €3 billion of additional capital.
The purpose of this action is to create a more substantial buffer to support our AA rating.
This is not a nationalisation and the Dutch Government is not taking an equity stake in AEGON.
AEGON’s liquidity remains strong and it remains in a strong financial position for all of the reasons set out above.
However, the uncertain economic outlook coupled with demanding investment markets make it prudent to have a large financial buffer in place. As well as strongly positioning us to withstand any future volatility, this buffer allows us flexibility to continue growing our business while giving our customers the security of a financially strong business.
This action has no impact on our UK operation or on any of our stakeholders and ensures we can continue to offer competitive products and services in all of our markets.
For more details on the deal, please see our questions and answers.
28 October 2008