Aegon completes its acquisition of Merrill's insurance subsidiaries
01 January 2008
Dutch insurer Aegon has announced that it has completed the acquisition of Merrill Lynch's life insurance subsidiaries for $1.25 billion in cash, including an excess surplus of about $425 million.
Aegon has acquired Merrill Lynch Life Insurance Co and ML Life Insurance Co, both of New York, from Merrill Lynch. The pair has formed a partnership that will allow Merrill Lynch to offer Aegon insurance products through its financial adviser network.
Through its Transamerica companies, Aegon will continue to offer insurance and investment services, including Merrill Lynch annuity products. Aegon says the acquisition will boost earnings slightly, while Merrill Lynch will record a net gain from the sale during the fourth quarter.