Aegon, Aviva bolster risk hedges, EU insurers gain

By Reed Stevenson AMSTERDAM (Reuters) - European insurance shares rose sharply on Thursday, as Dutch insurer Aegon announced steps to boost capital and reduce risk while British peer Aviva Plc bolstered its hedges against slumping stock markets. Aegon, which has seen its share price sliced in half since the global credit crisis intensified in September, projected a 275 million euros ($374.7 million) third quarter charge on credit impairments, a figure one analyst described as "not extraordinary." Aviva said it would protect itself from stock market falls through increased hedges, and that a further 40 percent fall in equity markets would reduce its surplus regulatory capital by 700 million pounds ($1.2 billion), compared with an estimated drop of 1.3 billion as of June 30 this year. The announcements came as shares in... [read full story]