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Aegon to sell its stake in La Mondiale Participations

Staff writer |
Aegon has reached an agreement to sell its 35% share in La Mondiale Participations to La Mondiale for EUR 350 million, in line with IFRS book value.

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The proceeds will be added to the company's excess capital buffer and will increase the group's IGD solvency ratio by approximately 5 percentage points.

"We look back at a successful partnership over the past 12 years with La Mondiale and are pleased with the results that we have achieved together", said Alex Wynaendts, CEO of Aegon. "Following a strategic review and in line with our commitment to optimize our portfolio, we concluded that the partnership no longer matches our ambitions."

Aegon and La Mondiale entered into a joint venture in 2002 to form La Mondiale Participations, which offers life insurance, pensions and savings products in France and Luxemburg. Aegon's share in net underlying earnings of the partnership amounted to EUR 19 million in the first nine months of 2014.

It is anticipated that the transaction will close during the first quarter of 2015, subject to regulatory approval.

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