AEGON N.V. has agreed to pay $1.3 billion in cash for Merrill Lynch Life Insurance Company and ML Life Insurance Company of New York.
AEGON, The Hague, Netherlands, says it expects to complete the deal by Dec. 31.
Merrill Lynch & Company Inc., New York, issues variable annuities through the 2 companies.
The deal is part of a larger agreement between the firms to team up in selling insurance and investment products. Merrill Lynch will continue to sell its Merrill Lynch Investor Choice Annuity product through its financial advisor network, while the companies AEGON is acquiring will continue to produce the annuities, AEGON says.
In addition, AEGON’s Transamerica subsidiaries will help Merrill Lynch advisors sell VAs.