AEGON Reaffirms Its Canadian Market Operations

AEGON insurance and investment company has decided that continuing operations in Canada will maximize shareholder value. The announcement follows a recently completed assessment of its Canadian operations.

It is now launching into a second phase that involves a reshaping of its business model to meet new growth objectives. Included in its master plan are efforts to improve efficiencies while reducing its capital allocation to the Canadian market.

In particular, the company’s strategic assessment concluded that Transamerica Life Canada represents a solid foundation for a successful presence in the Canadian marketplace. Transamerica Life Canada is AEGON’s main operating unit in the Canadian market, with total assets worth $10.8 billion at year-end, 2007.

To oversee the new business model, Douglas W. Brooks has been appointed president and CEO effective Sept. 24. He succeeds Paul Reaburn who has led Transamerica Life Canada since 2005 but will take a new role developing AEGON’s businesses in the Asian-Pacific market. 

The strategic assessment initiative is part of an ongoing review of all AEGON businesses that was announced in June.

AEGON also announced it is not affected by Lehman Brothers Holdings Inc.’s recent bankruptcy. AEGON’s Chief Financial Officer Jos Streppel affirmed: “AEGON continues to have a strong balance sheet and ample liquidity. Our financial flexibility of EUR 1.8 billion at the end of the second quarter provides additional assurance. We remain confident in AEGON’s ability to weather the challenging market environment and fulfill our obligations to our customers and many other key stakeholders.”

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