Aegon USA has entered into an agreement with Greenspoint Capital and The Newport Group to divest its Clark Consulting, for around $177.5m (€160m).
Clark Consulting is Aegon’s Bank-Owned Life Insurance (BOLI) distribution and servicing unit in the US.
Aegon said that the BOLI/COLI insurance block with a balance of $8.5bn is not part of this deal and will continue to provide services through its Aegon’s US subsidiaries.
The deal will allow Aegon to increase its risk-return profile and improve capital efficiency, in addition to reducing the capital deployed for its run-off businesses and enhance the return on capital invested.
Clark had developed BOLI programs for major financial institutions for around 25 years. It provides insurance solutions to enhance capital and meet the ever-changing life insurance needs of financial institutions.
In addition, Clark provides reviews of insurance programs, insurance investment options and administrative solutions for its clients.
Subject to regulatory approvals, the deal is expected to complete in the third quarter of this year.
Image: Aegon’s world headquarters in The Hague. Photo: courtesy of TeunSpaans.