Aegon will move its legal domicile to Bermuda and be regulated by the Bermuda Monetary Authority.

The move by the integrated, diversified, international financial services group follows the agreement to sell its domestic insurance business to competitor a.s.r.

The Dutch company said: “Following the closing of the transaction with a.s.r., Aegon will no longer have a regulated insurance business in the Netherlands. Under Solvency II rules, Aegon's current supervisor, the DNB, can therefore no longer remain Aegon's group supervisor.”

Solvency II is the prudential regime for insurance and reinsurance undertakings in the European Union.

The company will propose changes to its governance including the implementation of a one-tier board.

Aegon said in a statement: “Bermuda hosts many respected international insurance companies, including four of Aegon's subsidiaries.

“Bermuda’s regulatory regime is well recognised, having been granted equivalent status by the EU under the Solvency II regime, and by the UK under its own Solvency UK regime.

“It has also been designated as a qualified jurisdiction and reciprocal jurisdiction by the US National Association of Insurance Commissioners. This enables insurance companies that are regulated by the BMA to easily conduct cross-border business.

“I welcome the transfer of group supervision from the DNB to the BMA,” Lard Friese, Aegon’s CEO, said. “Bermuda has an established, well-regarded regulatory regime that will facilitate the implementation of our strategy to build leaders in investment, protection and retirement solutions, as outlined at our recent Capital Markets Day.”

The change of Aegon’s legal domicile to Bermuda will allow Aegon to maintain its headquarters in the Netherlands, remain a Dutch tax resident and maintain its listings on Euronext Amsterdam and the NYSE.

The company said the change in group supervision will not have a material impact on Aegon’s capital management approach, which will continue to focus on the capitalisation of its operating units, cash capital at the holding and gross financial leverage.

Consequently, the financial targets for 2025 that Aegon provided at its recent Capital Markets Day are unchanged. Aegon also reconfirms its intention to initiate a €1.5 billion share buyback programme shortly after the closing of the transaction with a.s.r.

Aegon expects its group solvency ratio and surplus under the Bermuda solvency framework to be broadly in line with that under the Solvency II framework during a transition period until the end of 2027.

The method to translate Transamerica’s capital position into the group solvency position will also be similar to the existing methodology. After the transition period, Aegon will fully adopt the Bermudian solvency framework.