AEG - Aegon stock gains on deal to combine Dutch operations with a.s.r.

• Aegon ( NYSE: AEG ) shares gained ~8% premarket on Thursday after the life insurance firm r eached an agreement to combine its Dutch pension, life and non-life insurance, banking, and mortgage origination activities with a.s.r.
• The transaction is expected to close in the second half of 2023.
• The deal creates a well-diversified Dutch insurance company and enables Aegon ( AEG ) to accelerate its strategy of releasing capital from mature businesses to become a leader in markets where it is well positioned for growth.
• Aegon ( AEG ) will receive a 29.99% strategic shareholding in a.s.r. with associated governance rights and EUR 2.5B in cash proceeds. It plans to return EUR 1.5B of the cash proceeds to shareholders to offset the dilutive effect of the transaction on free cash flow per share.
• The firm will also enter into a long-term asset management agreement with a.s.r. to manage parts of the combination's general account investments, the investments of the Premium Pension Institution (PPI) offering of Aegon Cappital, and a.s.r.'s mortgage funds.

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