Transamerica has agreed to hire Tata Consultancy Services to administer its life insurance, supplemental health insurance, voluntary benefits and annuity businesses, Aegon N.V. announced today.
Aegon, Transamerica’s Dutch parent, said Transamerica hopes to close on the deal by June 30.
The deal could affect about 2,200 U.S. workers, Aegon said.
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“All of the Transamerica employees currently supporting these business lines and whose roles are in scope will be offered positions” by Tata, Aegon said.
Aegon expects to record $100 million in conversion and transition charges for the arrangement in the first half of this year, and a total of $280 million in charges related to the shift over three years. It’s hoping the arrangement will cut operating costs by $70 million to $100 million per year.
The Transamerica employees who transfer to Tata will be able to stay in the U.S. cities where they’re based now, Aegon said.
Aegon is a life insurer and asset manager with headquarters in the Hague, in the Netherlands.
Transamerica was once based in San Francisco. It now has its headquarters in Baltimore and other main offices in Denver and in Cedar Rapids, Iowa.
In June 2017, Aegon transferred responsibility for about $14 billion in Transamerica life and annuity liabilities to Wilton Re Ltd., a unit of the Canada Pension Plan Investment Board.
Aegon issued the announcement of the Transamerica-Tata deal through its corporate headquarters, in the Hague.