The Commission has confirmed its approval of the €3bn that the Netherlands made available to the insurance company AEGON in 2008. Rescue aid was approved on the condition that within six months a plan showing how the financial institution would secure long term viability, ensure sufficient burden-sharing between AEGON and the State and offset the market-distorting effects of the measures would be submitted. The Commission has now approved the plan, under which AEGON will rebalance its business model by closing the institutional spread-based business, limiting exposure to equity risk from variable annuities and reducing the USA general account by €19bn. The plan also provides for a repayment schedule for the remaining state held capital, which, until repaid, subjects AEGON to a series of conditions to prevent market distortion. These include a ban on price leadership in specific segments of the Dutch market, a rating withdrawal of its main life subsidiary and a ban on acquisitions.
Register Now As you are not an existing subscriber please register for your free daily legal newsfeed service.Register
If you have any questions about the service please contact email@example.com or call Lexology Customer Services on +44 20 7234 0606.
Commission approves Dutch recapitalisation of AEGON
- Nabarro LLP
- Cyrus Mehta, Brian Sher and Rachel Bickler
- European Union, Netherlands
- September 23 2010
If you are interested in submitting an article to Lexology, please contact Andrew Teague at firstname.lastname@example.org.
“I enjoy the CLANZ newsstand and find it highly relevant to my job. I definitely have forwarded various articles to my colleagues on occasion where there is a point of general interest, particularly employment or IT law. I...
“I enjoy the CLANZ newsstand and find it highly relevant to my job. I definitely have forwarded various articles to my colleagues on occasion where there is a point of general interest, particularly employment or IT law. I really appreciate the service, it's a quick way for me to keep up to date in a way I wouldn't otherwise have time to.”