Company joins global list
Insurer Aegon listed as ‘too big to fail’
Aegon has been identified as one of a handful global insurers which are regarded as “too big to fail” and which will therefore faces tougher regulatory scrutiny and require higher capital requirements.
The Dutch insurer, whose UK headquarters is in Edinburgh, has been added to the Financial Stability Board’s list, replacing Generali among nine insurers.
The move comes as many international banks and insurers face more stringent regulation as policy makers strive to shore up the global financial system from possible future shocks of the sort that followed the collapse of Lehman Brothers seven years ago.
Aegon has been designated as one of the so-called global “systemically important” insurers, or G-SII’s. It earns most of its income through its US subsidiary Transamerica.
The FSB has also updated its list of 30 “systemically important” banks. Royal Bank of Scotland moved down the ranking, meaning it will not have to hold as many assets that can absorb losses.