Aegon is selling auto unit to HFS


December 11, 1997

Aegon N.V., the large Dutch insurance company with U.S. headquarters in Baltimore, said yesterday that it will sell Providian Auto and Home Insurance Co. to New Jersey-based HFS Inc. for about $219 million in cash.

Aegon USA Inc., the Baltimore-based subsidiary, acquired the business in June when it bought the insurance operations of Louisville, Ky.-based Providian Corp. for $3.5 billion.

"The sale of the property and casualty business supports Aegon USA's strategy to concentrate its resources on growth in the life insurance and retirement and savings product sectors of the market," said Donald J. Shepard, chairman of Aegon USA.

HFS, based in Parsippany, N.J., provides a range of services worldwide, including real estate sales, travel services, vehicle management, mortgage loans and worker relocation.

In April, the company bought PHH Corp. of Hunt Valley.

HFS is merging with CUC International Inc., a direct marketing company, to form Cedant Corp. That deal is expected to become final this month.

Pub Date: 12/11/97

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