Dutch insurance company's U.S. dealers to merge in pursuit of cost savings. AEGON-owned Transamerica Financial Advisors (TFA) and InterSecurities -- both full service broker-dealers that support independent registered representatives -- plan to merge in the name of cost saving and overall operational efficiency. The combined entity will operate under the TFA banner and support more than 1,500 brokers with $15 billion in end-client assets.

Parent's loss

"By leveraging a combined back-office and the very best attributes of both entities, we believe the consolidated TFA will be a stronger and more competitive financial services firm," said Seth Miller, the AEGON executive who will oversee the consolidation process. "With this structure, TFA will be better positioned to take advantage of opportunities that emerge as a result of the current market turmoil."

The larger, new-look TFA will move its headquarters from Los Angeles to St. Petersburg, Fla., where InterSecurities is now based.

The move, announced late last week, coincided with Netherlands-based AEGON's report of a $1.5-billion loss in its 2008 fourth quarter (as compared with a $854.4 million profit in Q4 2007), which it attributed to impairments of housing-related assets, equities and high-yield corporate bonds.

Neither Cedar Rapids, Iowa-based AEGON USA nor either of the brokerages set to merge would provide details of the combined entity's management team. -FWR

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