AEGON says Dutch government funding won't affect Scottish operation

Oct 29 2008

Insurance giants adamant Edinburgh jobs safe after it takes £2.36 billion

Insurance giant Aegon, which has its UK headquarters in Edinburgh, is taking £2.36bn of Dutch Government funding to strengthen its capital base in the wake of the credit crunch.

However the company, which employs 31,500 staff worldwide including 3000 in Scotland, assured investors there should be no doubt about its ability to fulfill its long-term obligations.

Chief executive Alex Wynaendts said it welcomed the additional capital buffer that the Dutch State has provided in a time of
uncertainty and unprecedented economic turmoil.

“Together with the steps we are taking to release capital and further reduce risk from our businesses, this allows us to enter 2009 with a significantly reinforced capital position and to focus on executing our strategy.

“There should be no doubt whatsoever about AEGON's ability to fulfill its long-term obligations. Safeguarding the trust and confidence of our shareholders, customers and employees remains our main priority."

A spokesperson for Aegon Uk said the key thing to stress was that Aegon was already in a strong capital position.

“There is no sense that Aegon was in any difficulty at any stage but what this does do is provide it with an additional capital buffer to help it weather any further market volatility that we might see in the months ahead.

“Essentially it doesn’t have any impact on the business in Edinburgh. We are not planning to change our strategy in any way. There is no suggestion there should be any concerns to any aspect of the business at all.

"Clearly we are living in untested financial conditions but if you are looking for a Scottish impact angle there is nothing specific I have to say.

“There are no implications for jobs. We are not changing anything we are doing in the UK.”