Aegon Acquires New York-Based Merrill Lynch Life Insurance Co.

Dutch life insurance and pension group Aegon NV and the New York-based Merrill Lynch & Co. Inc. announced on Monday that they have decided upon a strategic business agreement on Monday.

As a part of a deal Aegon USA will acquire Merrill Lynch Life Insurance Company and ML Life Insurance Co. of New York for $1.25 billion in cash.

The New York-based Merrill Lynch said in a statement that after the latest move it expects an increase in the sale of the insurance units during the fourth quarter of 2007.

"This transaction will allow Merrill Lynch to redeploy approximately US$800 million in equity capital to other parts of our business," Robert J. McCann, President of Merrill Lynch's Global Wealth Management business, said in the statement.

Aegon is reportedly one of the largest life insurance and pension groups along with some investment products.
source:http://www.allheadlinenews.com/articles/7009580360