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DUFF & PHELPS REAFFIRMS RATINGS FOR FIVE AEGON USA INC. SUBSIDIARIES

 CHICAGO, July 28 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed its `AA+' (Double-A-Plus) claims paying ability ratings for five wholly owned insurance subsidiaries of Aegon USA Inc.: these are Bankers United Life Assurance Company, Life Investors Insurance Company of America, Monumental Life Insurance Company, PFL Life Insurance Company, and Western Reserve Life Assurance Company of Ohio.
 Aegon USA is an insurance and financial services holding company wholly owned by Aegon NV, which is headquartered in The Hague, The Netherlands. Aegon NV ranks as one of the top 35 largest insurance groups in the world and is the second largest insurer in The Netherlands.
 Aegon USA's combined U.S. life companies statutory assets totaled $17.0 billion at March 31, 1993, and adjusted surplus was approximately $1.0 billion. Its primary focus is on life and health insurance and annuities and investment products, the vast majority of which are written and distributed through the five insurance companies assigned ratings by Duff & Phelps. About two-thirds of Aegon USA's modified liabilities were annuity and pension product liabilities, and about 63 percent of total premiums and deposits were generated from these interest sensitive products.
 Aegon USA, Inc. achieved very good earnings in 1992 with its pretax operating gain increasing 40 percent to $224 million utilizing Dutch accounting principles, and revenues rose approximately 13 percent.
 The U.S. statutory adjusted surplus level of each of the five insurance subsidiaries rated by Duff & Phelps was at a strong level given their individual product and investment mixes. Asset/liability management capabilities are good and provide additional confidence that adjusted surplus levels are appropriate.
 Invested assets for each of the insurance subsidiaries rated exhibit low exposure to mortgage and real estate sectors, and favorable mortgage default experience relative to the U.S. life industry. Less than investment grade exposure is well controlled and Aegon USA's overall default experience with below investment grade securities has been favorable.
 -0- 7/28/93
 /CONTACT: Kevin A. Ceurvorst of Duff & Phelps Credit Rating Co., 312-368-3144/
 (AEG)


CO: Aegon USA Inc. ST: IN: INS SU: RTG

SM -- NY041 -- 7228 07/28/93 11:02 EDT
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Publication:PR Newswire
Date:Jul 28, 1993
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