On completion of the re-domiciliation, the Bermuda Monetary Authority (BMA) will assume the role of group supervision of the Aegon insurance group.
Appleby’s role includes advising on the structuring of the continuance and the Bermuda requirements relating thereto, governance matters and matters relating to the change of group supervisor.
Bermuda Managing Partner Brad Adderley led the transaction with support from Counsel Josephine Noddings, Associates Amber Farrington and Ojeda Smith, and Trainee Kinika Armstrong.
Brad Adderley said, “We are delighted to advise Aegon on moving its domicile to Bermuda. This speaks to Bermuda’s internationally respected regulatory regime, and highly innovative and collaborative insurance market that is second to none.”
Bermuda hosts many respected international insurance companies, including four of Aegon’s subsidiaries. Bermuda’s regulatory regime is well recognized, 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 (NAIC). 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,” said Lard Friese, Aegon’s CEO. “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 BMA will assume the role of group supervisor following the transfer of Aegon’s legal domicile. In the envisaged interim period between the closing of the transaction with a.s.r. and the completion of the transfer of Aegon’s legal domicile, the role of group supervisor is expected to be allocated to the Dirección General de Seguros y Fondos de Pensiones (DGSFP), in accordance with Solvency II regulations. The DGSFP, in cooperation with the DNB, and after informing the European Insurance and Occupational Pensions Authority (EIOPA), is expected to delegate its tasks and responsibilities related to its role as group supervisor to the DNB for a period which is expected to cover the duration of this interim period.”
