RE:chart....gap to be filledAll fair thoughts. Here's a positive spin on today's news. from Bloomberg article: The transaction, which covers 27,000 policyholders, will release another 275 million pounds of capital that had been set aside under Solvency II regulations, the company said in a statement on Monday. Aegon will initially reinsure the liabilities to L&G followed by a so-called Part VII transfer that will boost its capital ratio by about 20 percentage points.
The divestment “is an important step in the strategic repositioning of our business in the U.K.,” Aegon CEO Alex Wynaendts said in the statement. “The divestment enables us to fully focus on growing our platform business.”
While I appreciate the short term technical negatives, I also think that medium to longer term things are shaping up for a strong move higher. I also note that as a Canadian investor I expect my returns here to be bouyed by a stronger US dollar vs. the loonie. I think we will retest the Can. dollar lows of early 2016 and that will further increase return on my Aegon investment. On point: Since I bought my AEG shares the US dollar has rallied 2.5 percentage points against the C$, mitigating some of the stock price decline.