Aegon is discontinuing new sales of executive non-qualified benefit plans, as well as bank-owned and corporate-owned life insurance, in the U.S.
The company, which also announced cuts to its Louisville, Ky., operations, said it will instead focus its attention on its core businesses: life insurance, pensions and asset management.
Aegon’s decision to wind-down its BOLI/COLI business is expected to result in a write-off of goodwill and other intangible assets of about $210 million, according to the Netherlands-based global insurance and financial services firm.
In 2009, underlying earnings before tax from BOLI/COLI amounted to $47 million.
“Key to Aegon’s long-term strategy is the need to focus on our core activities and identify ways to better leverage resources and capture efficiencies, as evidenced by our decision to consolidate operations,” said Mark Mullin, a member of Aegon’s Management Board and CEO of Aegon Americas. “We have concluded that over the long-term there is only a limited strategic fit between this business and Aegon’s core business.”
The BOLI/COLI operations are based in Dallas, Texas.
Aegon to halt its executive non-qualified, BOLI, COLI sales in U.S. via IFAwebnews.com .
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