Life insurer and asset manager Aegon has announced it is transferring its legal domicile to Bermuda. Its headquarters will remain in the Netherlands and it will also stay a Dutch tax resident.
The group’s supervision will move from the Dutch Central Bank (DNB) to the Bermuda Monetary Authority (BMA).
This, according to the announcement, will have no material impact on Aegon’s capital management approach.
According to the announcement, upon the change of the legal domicile becoming effective, Aegon N.V. will be converted into Aegon Ltd., a Bermuda entity, and all existing assets and liabilities, rights, obligations and other legal relationships of Aegon N.V. will remain with Aegon Ltd.
An Agon spokesperson stated: “Following the closing of the transaction with a.s.r., Aegon will no longer have a regulated insurance business in the Netherlands.Under Solvency II rules, Aegon’s current supervisor, the DNB, can therefore no longer remain Aegon’s group supervisor.
“After consulting the members of the college of supervisors, the BMA has informed Aegon that the BMA would become its group supervisor if Aegon were to transfer its legal seat to Bermuda.”
Bermuda hosts many respected international insurance companies, including four of Aegon’s subsidiaries. Its regulatory regime is well recognized, 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). This enables insurance companies that are regulated by the BMA to easily conduct cross-border business.
“I welcome the transfer of group supervision from the DNB to the BMA,” said Lard Friese, Aegon’s CEO. “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.”
Aegon’s regulated insurance entities in the US, UK, Spain, Portugal and in other jurisdictions will continue to be supervised by their current local regulators, the group explained.
In addition, Aegon’s asset management activities in the Netherlands will continue to be supervised by the Authority Financial Markets and the DNB.
The insurer will also continue to report under IFRS accounting standards. Aegon noted that it is exploring the implementation of US GAAP in the medium term, in addition to IFRS, so as to allow for better comparison against US peers, and provide long-term strategic flexibility for the group.
Following the closing of the transaction with a.s.r., the change in legal domicile is subject to shareholder approval at an Extraordinary General Meeting of Shareholders (EGM).
The Board of Vereniging Aegon has been informed of the intended change in legal domicile. It is supportive and will seek the approval from its members for their support, Agon noted.
