The European Commission has approved, under EU state aid rules applicable to the financial sector in the current crisis, the recapitalisation of the Dutch insurance company AEGON. The decision was taken after a detailed assessment of the company's preliminary plan submitted by the Dutch authorities on 19 November 2009 and of the final plan submitted on 26 July 2010.

On 27 November 2008, the Commission had approved the recapitalisation on a temporary basis as a rescue measure. The final plan meets the commitment provided by the Netherlands to show how AEGON will secure its long-term viability, ensure sufficient burden-sharing between the State and AEGON and will offset the limited market-distorting effects of the aid measures. The Commission concluded that the aid was in line with its Restructuring Communication and as such compatible with Article 107.3.b of the Treaty on the Functioning of the European Union (TFEU) that allows aid to remedy a serious disruption of a Member State's economy.

The plan also provides for a repayment schedule for the remaining State capital. AEGON will repay €500 million State aid as soon as possible and prior to 1 December 2010 and the remaining €1.5 billion before the end of June 2011.

Until full repayment of the aid, AEGON will be subject to a price leadership ban in specific segments of the Dutch market and to a rating withdrawal of its main life subsidiary in the Netherlands, in order to limit competitive distortions in the Dutch mortgage and savings and pensions markets. Furthermore, AEGON is subject to an acquisition ban during the same period.

The Commission recognizes the steps that AEGON has already taken in implementing these important strategic measures to enhance the company’s long-term prospects. The Commission has assessed the submitted plan against the provisions of its Communication on restructuring aid to banks. It analysed the company's financial projections and concluded that the measures described are able to secure the company's long-term viability and to address competitive distortions.

AEGON is a Dutch company providing insurance and investment services on a global scale. Its businesses include life insurance, assets management and retirement products. It is one of the leading financial institutions in Netherlands, employing approximately 28 thousand people and serving around 40 million customers worldwide with a total balance sheet of EUR 298.6 billion.