TRANSAMERICA LIFE ADMITS IT COULD HAVE CHARGED EXCESS FEES

Transamerica Life Canada, a subsidiary of Netherlands-based assurer Aegon, has told 200,000 investors in a variety of funds that it is investigating allegations that it had charged excess fees, which could have impacted on customers’ ultimate returns. The company promised that it would reimburse people for any losses suffered as a result of overcharging. Company president Paul Reaburn wrote in the communication that “we expect that the review and repayment will take a number of months to implement”. Transamerica sold a large number of so-called segregated funds in the late 1990s, which guaranteed either all or a significant proportion of an investor’s capital or an increase in capital. The cost of these capital guarantees had been estimated at about C$900m at the end of 2006. Parent Aegon provided more than C$200m in 2005 and 2006, and Transamerica Life has lost nearly C$130m this year, reported the Toronto Star .