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MONY AND AEGON USA AGREE ON PENSIONS SALE

 NEW YORK, Nov. 15 /PRNewswire/ -- The Mutual Life Insurance Company of New York (MONY) and AEGON USA Inc. (AEGON USA) have reached an agreement for the purchase of MONY's Group Pensions Operations by an AEGON USA subsidiary. The transaction is subject to regulatory approval. The companies are targeting a year-end 1993 effective date.
 AEGON USA will acquire approximately $6.3 billion of the assets and liabilities of MONY's group pensions business, which represent MONY's tax-deferred annuity, corporate defined contribution, and most of its investment management lines of business. AEGON USA will assume responsibility for the operations and staff (in Purchase N.Y., and in regional offices) that support the business.
 Assets transferred in the sale include $2.7 billion of general account assets, which will be made up of $1.1 billion of mortgages and $1.6 billion of bonds and cash (a fair representation of MONY's general account assets), and approximately $3.6 billion of separate account assets.
 "This acquisition fits into our long-term strategy of strengthening AEGON USA's position in its target markets. It will complement our existing asset accumulation activities while introducing us into a new segment of that marketplace," said Donald J. Shepard, AEGON USA's chairman, president and chief executive officer. "Additionally, it will allow AEGON USA to use its resources to grow the Pensions Operations and build upon the solid record that MONY has had."
 Michael I. Roth, MONY's chairman and chief executive officer, said the transaction "is significant because it advances MONY's recent restructuring effort to focus on the key areas of life insurance, disability income, annuities, mutual funds and securities. Income resulting from the transaction will enhance MONY's profitability. With the transaction, MONY will have a higher capital ratio and a reduced level of mortgages and non-investment-grade bonds."
 MONY will make a $200 million capital investment in AEGON USA by purchasing AEGON USA notes. In addition to interest payments on the notes, MONY expects to receive certain payments related to the transferred business, a future payment tied to the determination of the value of the transferred business at the end of nine years, and a potential payment based on new business growth.
 The transfer of the contracts in this transaction will be made through a reinsurance agreement, in accordance with New York State insurance law. MONY Pensions contractholders involved in the agreement will be notified and given the opportunity to accept or reject the transfer of their contracts to AUSA Life Insurance Co., Inc., a newly established New York state-licensed insurer that is a subsidiary of AEGON USA. AUSA Life is rated AA+ (Excellent) by Standard & Poor's and has been assigned a preliminary claims-paying rating of AA+ (Excellent ) from Duff & Phelps in anticipation of a satisfactory review of the pending transactions. The transferred business, new business underwritten by AUSA Life Insurance Co., and MONY's remaining group pensions business will be serviced Diversified Investment Advisors Inc., a newly formed registered investment advisor that will become a subsidiary of AEGON USA. Tom A. Schlossberg, executive vice president, MONY Pensions, will be president of Diversified Investment Advisors, and the current MONY Pensions management team will join Diversified Investment Advisors.
 AEGON USA, with more than $20 billion of assets, specializes in life and health insurance and annuity and investment products. It is the U.S. arm of the AEGON Insurance Group, based in The Hague, The Netherlands, whose shares trade on the Amsterdam, Tokyo, London, Zurich, Basel and Geneva stock exchanges, as well as on the New York Stock Exchange (symbol AEG).
 The Mutual Life Insurance Company of New York -- the eighth-largest mutual life insurer in the U.S. with $17.6 billion of assets as of September 30, 1993 -- offers life insurance, disability income, annuities, mutual funds, and securities. MONY's Pensions Operations currently services $8 billion of assets (including the $6.3 billion of assets to be transferred) and has 4,300 clients in the tax-deferred annuity, corporate defined contribution, and investment management lines of business.
 -0- 11/15/93
 /CONTACT: Charles Wasilewski, 212-708-2472, or Linda Bock, 212-708-2250, both with MONY, or Rosemary Kostmayer, 410-576-4576 of AEGON/
 (AEG)


CO: Mutual Life Insurance Company of New York; AEGON USA Inc. ST: New York IN: FIN SU: TNM

LG-LM -- NY049 -- 4350 11/15/93 11:19 EST
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Date:Nov 15, 1993
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