The Hague
02 January 2018
Reporter: Ned Holmes

Aegon to sell part of its US run-off business to SCOR


Aegon has agreed to sell a block of its reinsurance business to SCOR and dissolve a related captive insurance company.

As part of the agreement, Aegon’s Transamerica life subsidiaries will reinsure approximately $750 million of liabilities to SCOR.

Aegon will also dissolve a related captive insurance company in place to finance redundant reserves and will redeem $475 million of operational leverage supporting that captive.

The agreement is consistent with Aegon’s strategic objective to reduce the amount of capital allocated to its run-off business.

Approximately half of the life reinsurance business that Transamerica retained after divesting the majority of its reinsurance business to SCOR in 2011 is covered in the transaction.

The transaction is expected to have a one-time benefit of approximately $75 million on Transamerica’s capital position and a marginally positive effect on recurring capital generation.

Future underlying earnings aren’t affected by the deal because earnings of this block of reinsurance business are part of run-off businesses, which aren’t included in underlying earnings before tax.

A pre-tax International Financial Reporting Standards loss of approximately $125 million is expected as a result of the transaction and will be reported in its Q4 2017 results.

More news
The latest news from Captive Insurance Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
South Carolina welcomes 15 new captives
19 January 2018 | Charleston | Reporter: Becky Butcher
The South Carolina Department of Insurance has licensed a total of 15 new captives in 2017
A.M. Best withdraws SARRG ratings
19 January 2018 | Oldwick | Reporter: Ned Holmes
A.M. Best has withdrawn the credit ratings of SARRG, after the company requested to no longer participate in the rating agency’s interactive rating process
Regions Insurance promotes Mike Breedlove
19 January 2018 | Alabama | Reporter: Ned Holmes
Regions Insurance has appointed Mike Breedlove as its new executive vice president of property and casualty operations
Advantage opens Vermont office
18 January 2018 | Vermont | Reporter: Ned Holmes
Advantage Insurance has opened a new office in Vermont to support its growing captive insurance services business
Tennessee captive premiums exceed $1 billion mark in 2017
18 January 2018 | Nashville | Reporter: Ned Holmes
Tennessee-domiciled captive insurance companies exceeded $1 billion in written premiums in 2017 for the first time, according to year-end figures from TDCI
JLT IM hires new senior account manager
17 January 2018 | Vermont | Reporter: Ned Holmes
JLT IM has appointed Jocelyn Lyman as a new senior account manager
National Interstate establishes group captive
17 January 2018 | Ohio | Reporter: Ned Holmes
National Interstate Insurance has launched TowCap Premier, a group rental captive, designed exclusively for the towing and recovery industry