Aegon to Divest Majority of U.S. Run-Off Businesses

May 22, 2017

Aegon's Transamerica life subsidiaries will reinsure $14 billion of liabilities to affiliates of Wilton Re US Holding Inc.

On May 22, Willkie client Aegon announced it has agreed to sell its two largest US run-off businesses, the payout annuity business and the Bank-Owned/Corporate-Owned Life Insurance business (BOLI/COLI), to Wilton Re.  Under the terms of the agreement, Aegon's Transamerica life subsidiaries will reinsure $14 billion of liabilities to affiliates of Wilton Re US Holding Inc. The transaction also involved the sale of four legal entities.

With businesses in more than 20 countries in the Americas, Europe and Asia, Netherlands-based Aegon is one of the world's leading financial services organizations, providing life insurance, pensions and asset management. Wilton Re is a leading provider of In Force Solutions. Focusing on the North American life insurance market, the company provides risk capital and related services including M&A.

The multidisciplinary Willkie deal team was led by partners John Schwolsky and Rajab Abbassi, senior counsel Donald Henderson and counsel Elizabeth Bannigan, and included partners Eugene Chang, Christopher Peters, Jordan Messinger and David Drewes, and associates Andrew Prodromos, Geri Ann McEvoy, Meghan Hungate, Timothy DeKeyser, Robert Larimore and Adam Szklanny.