Another Dutch insurer receives government help. 3bn euros to be injected.

Dutch insurer Aegon is to receive 3bn euros in government capital. It will also scrap a dividend payment. The move is similar to the support given by the Dutch government to ING last week.

Aegon, based in The Hague, expects impairments of 400m euros before tax, and a net loss of 350m euros for the third quarter. At the end of June, Aegon had 344bn euros in investments, including 2.5bn euros in U.S. subprime mortgage assets.

The Dutch government will now appoint two directors to Aegon's supervisory board. Aegon's senior management will forego all performance-based income, in cash, options or shares, for 2008.

The capital injection will be provided via Aegon's largest shareholder, a foundation that controls 34% voting rights. The foundation will buy non-voting perpetual securities, convertible into shares, from the company. After one year, Aegon will be able to buy back the securities at 150% of face value, or 6 euros per share, or convert them into shares. The securities carry a coupon of at least 8.5 percent.

Earlier in October, the Dutch government said it would set aside 20bn euros to protect financial companies.

Aegon offers life insurance, pensions, and savings and investment products to more than 40m clients worldwide. Its origins date back to 1844 but Aegon was formed in 1983 with the merger of Dutch insurance groups AGO and Ennia. In 1999, the group became the third-largest U.S. life insurer after Prudential Life Insurance Co. of America and Metropolitan Life Insurance Co. when it bought rival Transamerica for $9.7bn. Its U.S. operations account for three-quarters of pretax operating profit.