Financial Rescue

Dutch insurer Aegon may seek US assistance

Aegon NV, the Dutch owner of U.S. insurer Transamerica, said Tuesday it has signed up with the U.S. federal government's financial rescue program but added it did not yet plan to ask for funds.

If it does ask for emergency funds from the TARP (Troubled Asset Relief Program), Transamerica could request a minimum of $1 billion (794 million euros) because of the size of the company.

However, Aegon spokesman Greg Tucker denied the company planned to ask for such funds.

Aegon has already received a 3 billion euro ($3.7 billion) lifeline from the Dutch government to shore up its capital position.

Tucker confirmed that the company had filed papers with TARP on Friday, but said Aegon is currently carrying excess cash and doesn't actually plan to request U.S. money.

"We have no issue with liquidity," he said. He said the company had filed the application as a precautionary measure.

"We haven't applied for any amount, we haven't said we would take it if eligible — which by the way is a long shot — we just think it's prudent in these times to secure a place at the table," he said.

To qualify for TARP funding under current guidelines, Aegon would also need to buy a U.S. savings and loan association. The company cited Maryland-based Suburban Federal Savings Bank as a potential candidate in its filing.

Aegon's shares fell more than 8 percent in early trading on reports it was seeking the U.S. government money, and then recovered somewhat after it downplayed the news.

By late afternoon, shares were down 4.5 percent at 3.30 euros in Amsterdam.

Tucker said the company was reviewing whether it should have issued a press statement at the time it filed for TARP assistance.

Aegon posted a loss of 329 million euros in the third quarter, swinging from a net profit of 541 million euros in the same period a year earlier, blaming write-offs and losses on investments resulting from the global financial crisis.

(Published by AP - November 18, 2008)