Aegon set to repay state
DUTCH insurer Aegon yesterday said it would repay €1bn (£896m) of state aid pumped into it last year.
The company, which sealed a deal for state assistance in October last year, said it would give back the remaining €2bn “at the earliest possible opportunity”.
Aegon saves between €350m to €375m in premium payments by repaying the money.
It received the government money after its share price plummeted and investments lost value as the global financial crisis hit.
Aegon first announced its intention to repay the state in August when it raised €1bn in an equity issue.
Chief executive Alex Wynaendts said: “It continues to be our intention to fully repay the Dutch State at the earliest opportunity – and this is a first step toward doing so.
“Aegon’s strong excess capital position and the improved economic outlook support our decision to exercise the option of early repayment.”
Under the terms of Aegon’s agreement with the Dutch State, the premium for repayment amounts to a maximum of 13 per cent depending on the volume weighted average share price of Aegon shares on the five trading days from 23 November.
The government also appointed two directors to Aegon’s supervisory board to oversee auditing, compensation and nominations as part of the deal. Aegon’s senior management gave up all performance-based income in cash, options or shares in 2008.
Dutch financial group ING also received a €10bn cash injection as part of the strategy to dig the country out of financial turmoil.