AEGON SELLS SPANISH P/C UNIT TO REALE MUTUA OF ITALY

Netherlands-based composite Aegon has sold its Spanish non-life insurance subsidiary Aegon Seguros Generales to Italy-based insurer Reale Mutua for about 250m euro. Aegon said that it would book a profit of about 130m euro after tax as a result of the deal and that the proceeds would be used to pay down debt. Aegon’s non-life activities in Spain generated gross premiums of 187m euro and net income of 21m euro in the first nine months of 2004. Aegon noted that the Aegon Seguros Generales distribution network would continue to sell Aegon’s life and health insurance products. At the same time, Aegon is acquiring the life portfolio of Reale Vida in Spain, which Aegon said would give the company access to Reale Mutua’s existing agent distribution network. The two distribution agreements are on an exclusive basis and are renewable after five years. Meanwhile, the US unit of Aegon has agreed to acquire Global Preferred Holding’s stake in Bermudian life reassurer Global Preferred Re for $57m in shares.