AEGON Completes Sale of Spanish P/C Sub

Dutch Financial service giant AEGON N.V. announced that it has completed the sale of AEGON Seguros Generales, its general insurance subsidiary in Spain, to the Italian mutual insurance company Reale Mutua Group.

The two companies had originally announced the deal at the end of December 2004 (See IJ Website Dec.31, 2004).

The sale price was announced as approximately 250 million euros ($323.7 million) to be “fixed at completion.” The announcement did not indicate the final price. AEGON said the “gain of the sale is approximately 160 million euros [$207 million] after tax.” The proceeds will be used to redeem debt.

AEGON had earlier indicated that its “general insurance activities in Spain generated gross premiums of 187 million euros [$242 million] and net income of 21 million euros [$27.2 million] in the first nine months of 2004.”