Aegon transfers legal seat to Bermuda

Written by Dan McGrath

3/7/2023

Aegon intends to move its legal seat to Bermuda, moving group supervision away from the Dutch Central Bank (DNB).

As a result, group supervision will move to the Bermuda Monetary Authority (MBA), although Aegon will maintain its headquarters in the Netherlands and will remain a Dutch tax resident.

The international financial group will also remain listed on Euronext Amsterdam and on the New York Stock Exchange.

Bermuda hosts a number of international insurance companies, including four of Aegon’s subsidiaries.

Bermuda’s regulatory regime is well recognised, having been granted equivalent status by the EU under the Solvency II regime, and by the UK under its own Solvency UK regime. It has also been designated as a qualified jurisdiction and reciprocal jurisdiction by the US National Association of Insurance Commissioners (NAIC), allowing for insurance companies that are regulated by the BMA to conduct cross-border business.

The change in legal domicile will now convert Aegon N.V. into Aegon Ltd., a Bermuda entity, with all existing assets and liabilities, rights, obligations and other legal relationships of Aegon N.V. remaining with Aegon Ltd.

However, the change in group supervision will not have a material impact on Aegon’s capital management approach, which will continue to focus on the capitalisation of its operating units, cash capital at the holding and gross financial leverage. As a result, financial targets for 2025 that Aegon provided at its recent Capital Markets Day are unchanged.

Furthermore, Aegon reconfirmed its intention to initiate a €1.5bn share buyback programme shortly after the closing of the transaction with a.s.r.

Following the transaction closure, the change in legal domicile is subject to shareholder approval at an extraordinary general meeting of shareholders (EGM).

Aegon’s chief executive officer, Lard Friese, said: “I welcome the transfer of group supervision from the DNB to the BMA.

“Bermuda has an established, well-regarded regulatory regime that will facilitate the implementation of our strategy to build leaders in investment, protection and retirement solutions, as outlined at our recent Capital Markets Day.”

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