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THE HAGUE, Netherlands--(BUSINESS WIRE)--The reinsurance agreement with Canada Life Reinsurance, a division of a Toronto-based life insurance company with an AA rating from S&P Global, provides full protection against the longevity risk associated with EUR 12 billion of liabilities. The agreement includes both deferred and in-payment pensions and annuities. The contract will commence on December 31, 2019, and will run until the portfolio runs off. The longevity reinsurance agreement has no impact on the services and guarantees that Aegon provides to its policyholders.

This longevity reinsurance agreement is in line with our strategy to release capital from mature, spreadbased businesses, said Alex Wynaendts, CEO of Aegon. Through this transaction we are freeing-up significant capital from our Dutch life insurance activities. This underscores our commitment to maintain a strong capital position in the interest of all our stakeholders.

The benefit to the Solvency II ratio of Aegon the Netherlands, as a result of the transaction, is expected to be in line with prior guidance of 10-12%-points. This corresponds to a 5-6%-points increase in the Groups Solvency II ratio. Underlying earnings before tax will decrease by approximately EUR 25 million per year.

About Aegon

Aegons roots go back 175 years to the first half of the nineteenth century. Since then, Aegon has grown into an international company, with businesses in more than 20 countries in the Americas, Europe and Asia. Today, Aegon is one of the worlds leading financial services organizations, providing life insurance, pensions and asset management. Aegons purpose is to help people achieve a lifetime of financial security. More information on aegon.com.

Forward-looking statements

The statements contained in this document that are not historical facts are forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. The following are words that identify such forward-looking statements: aim, believe, estimate, target, intend, may, expect, anticipate, predict, project, counting on, plan, continue, want, forecast, goal, should, would, could, is confident, will, and similar expressions as they relate to Aegon. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Aegon undertakes no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which merely reflect company expectations at the time of writing. Actual results may differ materially from expectations conveyed in forward-looking statements due to changes caused by various risks and uncertainties. Such risks and uncertainties include but are not limited to the following:

The frequency and severity of defaults by issuers in Aegons fixed income investment portfolios;

The effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting decline in the value of equity and debt securities Aegon holds; and

The effects of declining creditworthiness of certain public sector securities and the resulting decline in the value of government exposure that Aegon holds;

Further details of potential risks and uncertainties affecting Aegon are described in its filings with the Netherlands Authority for the Financial Markets and the US Securities and Exchange Commission, including the Annual Report. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, Aegon expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Aegons expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

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Aegon reinsures longevity exposure in the Netherlands - Business Wire

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