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

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.

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.

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

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