Commission approves Dutch emergency recapitalisation of Aegon

28 November 2008

The Dutch authorities plans to recapitalise the Dutch insurance and pension group Aegon with €3 billion through a special type of securities to be issued on 1 December 2008.

The Commission approved the emergency intervention in the form of a recapitalisation that the Dutch authorities intend to grant to the holding company of the Dutch insurance and pension group Aegon.

 

The Dutch authorities plans to recapitalise Aegon N.V. with €3 billion through a special type of securities to be issued on 1 December 2008.

 

The securities to be issued would qualify as capital under the applicable solvency regulations and produce an annual coupon equal to the higher of:

• €0.34 per security, non cumulative, payable annually in arrears
• 110% of the dividend paid on the ordinary shares in 2009
• 120% of the dividend paid on the ordinary shares in 2010
• 125% of the dividend paid on the ordinary shares from 2011 onwards

 

The coupon would only be paid if a dividend is paid on the ordinary shares.

 

If Aegon decides to buy the securities back, the state would receive 150% of the issue price. This payment structure is similar to the one used in the recapitalisation of ING.

 

Press release

 

© European Commission