The sale is expected to have a positive impact on future earnings
AEGON, a life insurance, pension and investment company based in The Hague, has sold its Taiwanese life insurance business to Zhongwei Company. The agreement for the sale was originally announced on April 22, 2009.
The decision to sell the Taiwanese life business is a result of the company’s strategic priorities to optimise capital allocation and returns. The sale resulted in a total negative earnings impact of E385m in the second quarter of 2009, as reported by the company.
AEGON expects the sale of its life insurance activities in Taiwan to positively impact future earnings. The company has also stated that the sale has no impact on its excess capital. The transaction is expected to have an immediate positive effect on the group’s cash flows.
Zhongwei Company is a holding company established and funded by a consortium led by the chairman of Meifu Development and the president of Taiwan Glass Industry.