Tuesday, November 4, 2008

Now a Dutch insurer!



NRC Handelsblad recently reported that after ING Bank now Dutch insurer AEGON has received a capital injection of EUR 3 bn . The bank also got two state appointed supervisory board members "thrown in" for free. The management also has to forfeit any bonus payment for the current year.

Surprisingly it seems like AEGON were encouraged by the government not to show false modesty with regards to the financial support. The insurer had apparently regarded EUR 2 bn as sufficient. But NRC Handelsblad reports that the state then offered an additional EUR 1 bn with more preferable conditions. Dutch finance minister Bos was quoted saying that AEGON was a financially sound company but that it was experiencing difficulties in rasing capital because both banks and investors behaved  extremely risk-averse at the moment.   

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