Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's affirms AEGON's ratings; maintains negative outlook

09 Jul 2010

London, 09 July 2010 -- Moody's Investors Service today affirmed the A3 senior debt and Baa2 subordinated debt ratings of AEGON N.V. ("AEGON") and the A1 insurance financial strength (IFS) ratings of AEGON's U.S. life insurance operating companies (collectively "AEGON USA"). Moody's maintains a negative outlook on all of AEGON's long-term ratings.

Moody's also affirmed the Prime-2 short term ratings for commercial paper of AEGON N.V and AEGON Funding Company LLC., and affirmed at Prime-1 the short-term IFS ratings of several AEGON USA subsidiaries. A complete list of ratings follows below.

Separately, Moody's has withdrawn the A1 insurance financial strength ratings and negative outlooks of Merrill Lynch Life Insurance Company and ML Life Insurance Company of New York for business reasons. For more information, please refer to Moody's Withdrawal Policy on moodys.com.

Moody's said the affirmation of AEGON's ratings reflects the strong diversified franchise of the group, with leading positions in the US, the Netherlands and the UK, the strong and improving group capital position and good liquidity and ALM management. The affirmation also reflects the first signs of stabilisation of the group's profitability, which is slowly recovering, albeit remaining at a lower level than before the outset of the financial crisis.

The rating agency added that the negative outlook on the ratings reflects the existence of negative pressure from (i) the uncertainties related to the ultimate decision by the European Commission (EC) on the €3.0 billion State-aid received by AEGON in 2008 and (ii) the depressed group profits, which are expected to continue to be impacted by asset impairments and challenging economic environment in the short-term.

Commenting on the affirmation of ratings of AEGON's US operations, Moody's said that it continued to be based on the company's strong positions in the U.S. life and retirement services markets. "Despite the company's decision to exit and/or de-emphasize certain non-core businesses (i.e., institutional investment products, life reinsurance, certain annuity products), we expect AEGON USA to remain a solid, albeit somewhat smaller player in the U.S. over time." said Vice President and Senior Credit Officer, Laura Bazer. "Because these non-core businesses carry higher levels of risk than many of AEGON's traditional businesses, we view reduction in these exposures as a credit positive," the analyst added.

As concerns the UK and the Dutch business, the group enjoys a strong brand recognition and leading market positions with a good product diversification. Nevertheless the stand-alone fundamentals of the UK operation have suffered in 2009 both in terms of profitability and capital, and the group has recently announced a restructuring plan to address the unit's low profitability by cutting costs by 25% by end 2011 and focusing on selected business lines.

The group's capital position also recovered over the last 12 months with excess capital on their internal model of €3.7 billion at the end of the first quarter 2010, up €1.0 billion relative to the first quarter 2009, thanks to the various capital preservation initiatives undertaken by the group over the last few quarters.

NEGATIVE OUTLOOK

Commenting on the negative rating outlook, Moody's mentioned the uncertainties related to the ultimate decision by the EC on the €3.0 billion State-aid received by AEGON in 2008. Moody's noted that it continues to closely monitor the situation in this regard and expects that a decision may be reached within the next few months, at which time it will evaluate the rating implications of any deviations from the current strategy.

Separate from the uncertainty related to the EC outcome, AEGON still faces significant financial challenges in the coming quarters, particularly from its US operations. These include continuing above-average asset losses and depressed earnings in 2010, arising from structured real estate-related assets, commercial mortgage loans, and alternative investments; uncertainty about the disposal of the U.S. life reinsurance business; and high financial leverage and constrained coverage ratios on a consolidated AEGON basis. According to the rating agency, de-risking initiatives put in place to strengthen the group's financial profile, whilst beneficial in the long-term, will take some time to complete.

Moody's said that the following factors could prompt a downgrade of AEGON USA and AEGON N.V. ratings: (i) completion of the EC's review of AEGON's plans with substantially negative consequences for the group's business or financial profile, (ii) consolidated financial leverage exceeding 40% and earnings coverage below 4 times on an IFRS basis for a sustained period, or (iii) for the U.S. operations, pre-tax asset impairments above $2.0 billion in 2010 or a consolidated NAIC RBC ratio of less than 300%.

Moody's said that the following factors could move AEGON's outlook back to stable from negative: (i) completion of the EC's review of AEGON's plans with no adverse consequences to the group's business or financial profile, (ii) consolidated financial leverage in the mid 30% and earnings coverage in the 6-8x range on an IFRS basis, (iii) improved profitability with sustained return on capital (as defined by Moody's) in the mid single digits, and (iv) for the U.S. operations, pre-tax asset impairments of no more than $750 million in 2010 and a consolidated NAIC RBC ratio of at least 325% on a sustainable basis.

The following ratings were affirmed with a negative outlook:

- AEGON N.V.: Senior unsecured debt A3;

- AEGON Funding Company, LLC: guaranteed (by AEGON N.V.) senior unsecured debt A3;

- AEGON N.V.: perpetual capital securities and perpetual subordinated debt Baa2;

- Transamerica Capital II: trust preferred stock rating Baa3;

- Transamerica Capital III: trust preferred stock rating Baa3;

Transamerica Finance Corporation: guaranteed (by Aegon N.V.) senior unsecured debt A3;

- Commonwealth General Corporation: guaranteed (by AEGON N.V.) senior unsecured debt (MTN program) A3;

- Transamerica Life Insurance Company: long-term insurance financial strength rating A1;

- Transamerica Financial Life Insurance Company: long-term insurance financial strength rating A1;

- Stonebridge Life Insurance Company: insurance financial strength rating A1;

- Western Reserve Life Assurance Co of Ohio: insurance financial strength rating A1;

- Monumental Life Insurance Company: long-term insurance financial strength rating A1;

- Monumental Global Funding Limited: long-term secured program rating A1;

- Monumental Global Funding II: long-term secured program rating A1;

- Monumental Global Funding III: long-term secured program rating A1;

The following ratings were affirmed with a stable outlook:

- Transamerica Life Insurance Company: short-term insurance financial strength rating at Prime-1;

- AEGON N.V.: short-term rating for commercial paper Prime-2;

- AEGON Funding Company, LLC: short-term rating for commercial paper Prime-2;

- Transamerica Financial Life Insurance Company: short-term insurance financial strength rating at Prime-1;

- Monumental Life Insurance Company: short-term insurance financial strength rating at Prime-1;

The following ratings were withdrawn

- Merrill Lynch Life Insurance Company: insurance financial strength rating at A1;

- ML Life Insurance Company of New York: insurance financial strength rating at A1;

The last rating action on the group's hybrids ratings was on May 25, 2010, when Moody's confirmed with a negative outlook the Baa2 long-term rating for the perpetual capital securities and perpetual subordinated securities of AEGON N.V. and the Baa3 long-term rating for the trust preferred securities of Transamerica Capital II and Transamerica Capital III.

The last rating action on AEGON N.V. took place on 17 February 2009, when Moody's downgraded AEGON N.V.'s senior debt to A3 from A2 and the insurance financial strength ratings of AEGON's U.S. life insurance operating companies to A1 from Aa3. In the same rating action, Moody's also downgraded to Prime-2 from Prime-1 the short term ratings for commercial paper of AEGON N.V and AEGON Funding Company LLC., and affirmed at Prime-1 the short-term IFS ratings of several AEGON USA subsidiaries.

The principal methodology used in rating AEGON N.V. and AEGON US was "Moody's Global Rating Methodology for Life Insurers", published in May 2010, which can be found on www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating these issuers can also be found in the Rating Methodologies sub-directory on Moody's website.

Based in The Hague, Aegon N.V. had total assets amounting to €299 billion as at 31 December 2009 (YE 2008: €289 billion) and reported a net profit of €204 million in 2009 (2008: loss €1,082 million).

Moody's insurance financial strength ratings are opinions of the ability of insurance companies to pay punctually senior policyholder claims and obligations.

London
Antonello Aquino
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

New York
Laura Bazer
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's affirms AEGON's ratings; maintains negative outlook
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.