Dutch insurer Aegon to repay state aid

17th August 2010, Comments 0 comments

Dutch insurer Aegon said Tuesday it planned to repay the last two-thirds of a three-billion-euro cash injection it received from the state in October 2008, by the end of June next year.

Of that amount, 500 million euros (642 million dollars) will be repaid this month, the company said, announcing that it expected final European Commission approval for its deal with the Dutch state later on Tuesday.

As part of an "approval process" with the commission, it has been agreed to reduce the premium on repayment to the state from 50 percent to 40 percent, the insurer said.

"We are pleased to have concluded this process with the European Commission, which is expected to approve the capital support," Aegon chief executive officer Alex Wynaendts said in a statement.

"As part of the agreement with the European Commission, Aegon will complete full repayment of the remaining two billion euros by the end of June 2011, market conditions permitting."

Aegon announced in December last year that it had paid back the first one billion euros in aid received from the state to help shield it from the global financial crisis.

The money for that payment was raised through the sale of shares.

© 2010 AFP

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