Definitive approval European Commission of support AEGON
The European Commission has definitively approved the state aid granted to AEGON N.V. in 2008. This means that the European Commission is of the opinion that AEGON will take sufficient measures to guarantee the viability in the long-term.
In October 2008, the Dutch government strengthened AEGON's core capital with 3 billion euros. At the time, the European Commission gave its temporary approval. Meanwhile. AEGON has paid back (as much as) 1 billion euros of this support.
In order to achieve definite permission for the support, the Dutch government had to file a so-called viability plan. To that end, the government recently filed a definitive plan in cooperation with AEGON. This plan describes which measures AEGON will take in order to guarantee its viability in the long-term. These include measures in those parts of the company that to a greater extent were responsible for the problems occurring in late 2008. In addition, there are some behaviour limitations in order to avoid possible market distortions.
Apart from that, agreements have been made regarding the repayment of the still outstanding support. AEGON has committed itself to pay back 500 million euros before 1 December 2010. As a result, half of the total amount of support will have been paid back. The repayment of the other half amounting to 1.5 billion euros will be effected before 1 July 2011 - insofar as market conditions allow. Thus the minimal return on the total state support will amount to 17.5 %.