Aegon, the world's fifth largest insurer, is in talks with the trust fund that is its biggest shareholder over a financial restructuring that would give it access to capital.
The deal could involve the Vereniging trust fund founded for the benefit of Aegon employees and group companies effectively agreeing to give up control of Aegon and reducing its stake.
The trust fund, which owns 37 per cent of the group's ordinary shares and 52 per cent of its voting shares, may sell down its stake and use the proceeds to reduce its €3.6 billionof debt. The trust could then pass some of the proceeds to Aegon to use as working capital.
Aegon said any deal would not involve it issuing new shares, and declined to confirm that it could raise over €4.5 billion.
However, analysts said fresh cash would strengthen its capital position and give it financial flexibility to write new business. Aegon is thought to be interested in taking a 50 per cent stake in Sony Life, Japanese life assurer.
Shares in Aegon slid 5 per cent yesterday to €12.42 as investors reacted to fresh evidence of the insurance sector's need for capital.
Legal & General, UK life assurer, on Tuesday unveiled a deeply discounted £786 million sterling (€1.25 billion) rights issue, and big cash calls are expected from Zurich Financial Services, and Royal & Sun Alliance. - (Financial Times Service)
