Insurance: AEGON to sell Guardian

AEGON will sell Guardian to private equity group Cinven for a cash price of GBP275 million. Guardian has some GBP7,400 million in assets under management. AEGON Asset Management has entered into a long-term agreement with Cinven and will continue to manage the assets

According to AEGON, "The book value of the Guardian business amounted to GBP 271 million as per June 30, 2011, while the embedded value amounted to GBP 322 million. Underlying earnings before tax totalled GBP 23 million in 2010."

Guardian, based in Lytham, England, employs approximately 170 people, and for most, their employment arrangements will be transferred to the buyer upon completion of the sale of the business.The deal is expected to complete in the last quarter of this year, subject to regulatory approval.