UPDATE 1-Aegon hires BofA on Transamerica Re sale–sources

* Aegon said last month was weighing unit’s sale

* Transamerica Re had book value of $2 bln

* Aegon shares up 1 pct
(Adds background, share price, byline)

By Paritosh Bansal

NEW YORK, July 7 (BestGrowthStock) – Dutch insurer Aegon NV
(AEGN.AS: ) has hired Bank of America Corp (BAC.N: ) to advise it
on a possible sale of its U.S.-based reinsurance unit,
Transamerica Reinsurance, sources familiar with the matter
said.

Aegon said last month it was considering selling
Transamerica Re, which had a book value of 1.6 billion euros
($2 billion), excluding excess capital at the end of 2009.
[ID:nLDE65L059]

Aegon and Bank of America declined to comment. The sources
declined to be named because the talks are private.

Transamerica Re, which operates globally, takes on pay-out
obligations of another insurer’s life products.

Munich Re (MUVGn.DE: ), Reinsurance Group of America Inc
(RGA.N: ), Scor SE (SCOR.PA: ) and Hannover Re (HNRGn.DE: ) are among
possible buyers, Credit Suisse analysts said last month.
[ID:nLDE65M150]

They pegged the value of the unit at $1 billion to $1.2
billion.

Aegon has said any proceeds from the possible sale of
Transamerica Re, would be reinvested in fast-growing markets
rather than repay an emergency government loan it received
during the financial crisis.

Aegon shares were up 1 percent at 4.44 euros.
(1 euro=$1.259)
(Reporting by Paritosh Bansal; additional reporting by Reed
Stevenson in Amsterdam; editing by Andre Grenon)
(For more M&A news and our DealZone blog, go to
http://www.reuters.com/deals))

UPDATE 1-Aegon hires BofA on Transamerica Re sale–sources