Wilton Re, a life insurance and reinsurance provider, has completed the acquisition of Transamerica Life Canada from Aegon in a deal valued at approximately C$600m (417m).
The agreement, which was inked in October 2014, concluded after receiving concerned regulatory approvals, according to Aegon.
Aegon CEO Alex Wynaendts said: "We continually review the performance of our businesses to ensure that they support our ambition to become a leader in our chosen markets.
"We have concluded that our Canadian life insurance business does not support that goal. The decision to divest these activities will lead to an improvement in the group’s return on equity of 40 basis points.
"At the same time, we believe this is a good outcome for our customers and employees, as the company will continue to offer competitive choices for the middle market in Canada."
Aegon noted that the divestiture of its Canadian life insurance business will result in a book loss of C$1.2bn (0.8bn), which will be booked in the third quarter of 2015.
The disposal includes Transamerica Life Canada, Canadian Premier Life, Legacy General Insurance Company, Aegon Capital Management, Aegon Fund Management, CRI Canada and Selient.
Wilton Re will rename the Transamerica Life Canada with an aim to provide a unique, fresh identity for the Canadian market.
Transamerica Life Canada offers a range of life insurance products and service through a national network of independent distributors and advisors.