Dutch Insurer Aegon to take $290 Million Charge from U.S. Restructuring

December 2, 2010

Dutch insurer Aegon NV will cut up to 500 jobs in the United States and discontinue sales of certain types of life insurance policies, it said on Wednesday, leading to $290 million in restructuring charges and write-downs.

Aegon said the job cuts would result in $80 million in charges, $60 million of which would be taken in the fourth quarter of this year and the rest in 2011.

The company said it would stop selling certain bank-owned life insurance and corporate-owned life insurance products, leading to $210 million in charges to write down goodwill and other assets.

Aegon said there was a “limited strategic fit” between the products it was discontinuing and the rest of its U.S. business.

Aegon, which was bailed out by the Dutch government in Oct. 2008, said it would recognize annual savings of about $70 million once the restructuring had been completed.

The company said it would provide more details on its restructuring during investor presentations next week.

The company is a top-10 U.S. life insurer through its Transamerica unit. It is also in the process of trying to sell Transamerica Reinsurance.

(Reporting by Ben Berkowitz)

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