Aegon to sell Taiwan unit for EUR 65 mln

Apr. 24, 2009 (China Knowledge) - The Netherlands-based Aegon NV, one of the world's largest listed life insurance groups, said Wednesday that it has agreed to sell its Taiwanese life insurance subsidiary for EUR 65 million (US$84 million) to Zhongwei Co Ltd as part of its efforts to optimize capital allocation and returns.

The deal is expected to deprive Aegon of about EUR 400 million in earnings in the second quarter, said Aegon, stressing that it will continue to focus on Asian courtiers, including China, India and Japan as they have great growth potential.

Aegon, which obtained EUR 3 billion in capital injection from the Dutch government last October, said the buyer, Zhongwei, is a holding company established and funded by a consortium led by the Chairman of Meifu Property Development Group and the President of Taiwan Glass Industry.

The transaction is subject to regulatory approval and will probably take place by the end of September 2009.