Dutch insurance company AEGON has spent the past few months reassessing the strategic focus of its business in Canada. Thanks to this re-evaluation, the company has decided to continue operating in the Canadian market.
AEGON has also appointed Douglas W. Brooks as the new president of its Canadian business.
Alex Wynaendts, is AEGON's president and CEO. The announcement was made on the parent company's website in mid September. AEGON says it performed a portfolio review in June 2008 to assess its strategic options in Canada. The insurance company came to the conclusion that continuing to do business in Canada would maximize shareholder value of AEGON stock.
Toward this end, the business model in Canada will be reshaped in order to meet AEGON's profitable growth objectives. Key objectives will include improving efficiency of operations and reducing AEGON's capital allocation to the Canadian market.
Mr. Brooks replaced Paul Reaburn at the head of AEGON's Canadian operations on Sept. 24 with the mandate of improving profitability in Canada and growing profitable segments in this market. He will also prepare a more detailed business plan for AEGON's Canadian operations. Mr. Reaburn will now work to develop AEGON's businesses in the Asian-Pacific market.
AEGON concluded its announcement by indicating that Transamerica Life Canada represents a solid foundation for AEGON's successful presence in the Canadian market. Transamerica Life Canada has assets of $10.8 billion dollars in the country. AEGON operates two other subsidiaries in Canada: AEGON Capital Management and AEGON Fund Management.
In other developments, in early September, Transamerica announced that it had reached an agreement in principle to settle the excess management fee claim in a proposed national class action began against Transamerica in 2003.
"Under the agreement in principle, Transamerica will compensate policyholders who invested in various Investment Manager Series (IMS) segregated funds for any excess management fees charged and for related losses." The proposed settlement will affect more than 100,000 policyholders across Canada.
To see the complete announcement, visit EXTRA www.insurance-journal.ca/extra.