Aegon stocks fall
Dutch insurance company Aegon suffers the greatest losses of the Netherlands’ stock market fall on Monday.7 October 2008
AMSTERDAM -- Shares in the insurer Aegon NV fell the most among Dutch shares Monday, as markets around the globe dropped.
Aegon shares were down 20 percent at EUR 5.20 in Amsterdam, compared with a 6 percent fall for the Netherlands AEX index of valuable stocks.
ING, the Netherlands' only other financial share remaining after the nationalisation of the Dutch sections of ABN Amro and Fortis, was down 10 percent.
Aegon's stock suffered the first week of October as well, after a comment by US Senate Majority Leader Harry Reid.
Arguing in favor of the US government's USD 700 billion (EUR 515 million) financial bailout plan, Reid said a "well-known" insurer might not have enough money if financial markets remained troubled.
Aegon has two-thirds of its business in the US, where it operates Transamerica.
On 19 September, Aegon Chief Executive Alex Wynaendts issued a statement to reassure markets, noting strong credit ratings and that the company had EUR 1.8 billion in additional cash in July.
Aegon said it would lose much less than its total exposure to US financial institutions that crashed.
Total exposure reported by the company includes EUR 125 million in exposure to Washington Mutual credit default swaps, EUR 265 million in Lehman Brothers bonds, EUR 189 million in exposure to AIG, and EUR 311 million in exposure to AIG companies.
[AP / Expatica]