Aegon, the world's fifth largest insurer, has announced that it is negotiating a financial restructuring deal.
Major shareholder Vereniging is reportedly considering a realignment of its stake in A ...
Aegon, the world's fifth largest insurer, is set to announce that it is negotiating a financial restructuring deal to raise up to £3bn.
Major shareholder Vereniging is reportedly considering a realignment of its stake in Aegon, to give it greater financial flexibility. Aegon stressed that the restructuring would not result in any new shares being issued.
Previously thought of as one of the best-managed insurers in Europe, the news is likely to unsettle the city.
Today's move comes amid a flurry of activity by insurers who are taking measures to shore up their balance sheets. Yesterday Legal & General announced a £786m rights issue, while Zurich Financial and Royal & SunAlliance are both preparing to raise billions of pounds to raise capital.
Aegon issued a profits warning in July against stock market turmoil and a falling dollar. The insurer warned that its earnings would be 30-35% lower than forecast.
The company has also suffered exposure to corporate failures like WorldCom, and although its exposure to September 11 was small, the market fallout hit its balance sheet.
Analysts will turn their attention to the other major insurers amid rumours that they are about to make a cash call.
