News Releases

Barclays Capital has executed a privately placed, £250m value in-force life insurance securitisation for AEGON Scottish Equitable, the primary UK subsidiary of AEGON N.V. The transaction, launched on Friday 18 July, was rated single-A by Fitch.

This innovative transaction includes a modelled definition of surplus, developed by Barclays Capital, which enables the securitisation of a defined book of business within an open fund, without the need to transfer the defined book to a separate legal entity.

In addition, the deal incorporates the option for AEGON Scottish Equitable to add new business to the defined book each year for the first three years, maintaining the amount of financing outstanding and maximising the duration of the benefits.

There will be no collateralisation of transaction proceeds, with the cash received by AEGON available to be used at its own discretion. The deal has received operational leverage treatment from the rating agencies.

“This transaction has met the needs of AEGON by successfully helping the company to support its strategic goals outlined at its recent analyst and investor meeting at an attractive cost compared with other capital raising alternatives”, said Kory Sorenson, Head of the Insurance Capital Markets team at Barclays Capital. 

Ends

For further information, please contact:

Jon Laycock, Barclays Capital Communications
+ 44 (0)20 7773 4324
jon.laycock@barcap.com

Notes to Editors:

About Barclays Capital

Barclays Capital is the investment banking division of Barclays Bank PLC which has an AA long-term credit rating and a balance sheet of over £1.2 trillion. With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with solutions to their financing and risk management needs.  Barclays Capital has offices in 29 countries, employs over 16,200 people and has the global reach and distribution power to meet the needs of issuers and investors worldwide.

For further information about Barclays Capital, please visit our website www.barclayscapital.com.