AEGON to acquire Merrill Lynch Life Insurance companies

14 August 2007

Life insurance and pension cover provider, AEGON, and wealth management, capital markets and advisory company, Merrill Lynch have announced that they will form a strategic business relationship in the areas of insurance and investment products.

As part of this relationship, an AEGON company has signed an agreement to acquire Merrill Lynch Life Insurance Company and ML Life Insurance Company of New York for $1.3 billion in cash including theexcess surplus of approximately $425 million.

The transaction is expected to close before the end of the fourth quarter of 2007, subject to customary regulatory approvals and closing conditions.

Merrill Lynch will continue to serve the insurance needs of its clients through its core distribution and advisory capabilities. Importantly, Merrill Lynch will continue to offer its flagship Merrill Lynch Investor Choice Annuity product through its financial advisor network. The companies AEGON is acquiring will issue products.

Both companies anticipate substantial benefits for clients arising from this partnership including increased breadth of product offerings and enhancements to existing products.

AEGON''s Transamerica companies will provide support to the Merrill Lynch financial advisor network. This acquisition is in line with Transamerica''s strategy to develop alliances with strong distribution partners. This new relationship will place Transamerica in a position of strength in the sales of variable annuities within the wirehouse distribution channel.