Aegon to Take $573 Million in Charges
Friday, 10 October 2008

AP, AMSTERDAM, Netherlands -- The insurer Aegon NV said Thursday it will book 420 million euros ($573 million) in charges on bad bonds and other credit assets in the third quarter.

Its shares, which have declined even more than most European financial shares in recent weeks, rebounded 4.7 percent to 4.30 euros ($5.87), still down 64 percent for the year.
 
The Dutch company has two-thirds of its operations in the U.S., where it operates insurer Transamerica.
 
Aegon said that despite the impairments it ''expects its level of capital to remain above what it needs to maintain an AA credit rating through the remainder of the year.''
 
Chief Executive Alex Wynaendts was to address an analysts' conference in London Thursday.
 
Analyst Thijs Berkelder of Petercam said the impairments were ''in view of the size of the turmoil, not extraordinary.''
 
''As cash flows ... the statements remain healthy, (Aegon's) liquidity it seems is not at risk,'' he said in a note.
 
He repeated a ''hold'' rating for Aegon, but praised the company for giving investors some guidance.
 
The company said it has a maximum of 125 million euros ($170 million) in exposure to Washington Mutual credit default swaps, 265 million euros ($360 million) in Lehman Brothers bonds, 189 million euros ($257 million) in unspecified exposure to AIG and 311 million euros ($422) in exposure to AIG operating companies.

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