Insurers next for state bailout

By Iain Dey, Times Online

AEGON, the giant European insurance group, is in weekend talks with the Dutch government about the possibility of joining a €20 billion (£16 billion) state recapitalisation scheme.

The group, which employs more than 3,000 people in the UK through its Scottish Equitable division, has been heavily hit by credit-market losses and has warned of a further €275m of writedowns in the third quarter.

Although the company is not thought to be in danger of breaching solvency rules, Aegon is said to be examining whether to use the Dutch scheme to boost its solvency ratios.

The scheme was designed last weekend to facilitate a cash injection into ING, the banking and insurance group. Read more….