Aegon posts sharp loss on write-down

CEDAR RAPIDS - Aegon, corporate parent of Transamerica in Cedar Rapids, on Thursday reported a $564.9 million third-quarter loss, primarily driven by an $809.7 million book loss from the sale of the company's business in Canada.

The loss was in sharp contrast to a $56 million profit the Netherlands-based company posted in the same quarter of 2014.

Sales rose to $2.8 billion in the three-month period that ended on Sept. 30, from $2.5 billion in the third quarter of 2014.

New premium production for accident and health and general insurance declined to $248 million, as the effect of a stronger U.S. dollar was more than offset by fewer portfolio acquisitions in the United States.

'During the third quarter of the year, Aegon's earnings were impacted by assumption changes, our ongoing model refinement program and the anticipated book loss on the sale of our low-return business in Canada,” Aegon CEO Alex Wynaendts said in a news release.

'At the same time, sales for the quarter remained strong, particularly in our fast-growing U.S. retirement plan and asset management businesses.”

Wynaendts said the Sept. 25 acquisition of pension business Mercer HR Services's U.S. defined contribution record-keeping business strengthened the company's position in one of a key growth area.

'Mercer is widely recognized for its best-in-class solutions in the large corporate benefits-administration market,” he said. 'The transaction complements Transamerica's current service offering, which has experienced success and growth in the large markets with a primary focus on the not-for-profit segment.

'The number of retirement plan participants serviced by Transamerica will increase by 917,000 to approximately 5 million, and assets under administration will increase by $71 billion to approximately $216 billion.

Transamerica operations employ about 4,000 in northeast and southwest Cedar Rapids.