Special Report: Global Financial Crisis

    BRUSSELS, Oct. 28 (Xinhua) -- The Dutch government is reinforcing the capital position of Aegon Group by 3 billion euros(3.84 billion U.S. dollars) to help it tide over the financial crisis.

    The government will buy 3 billion euros of non-voting shares to enhance the capital strength of Aegon, the largest Dutch insurer, the country's Finance Ministry said in a statement Tuesday.

    "With this capital reinforcement, Aegon remains a healthy and well-managed insurance company that has a strong capital buffer," it said.

    The Dutch government set aside 20 billion euros (25.6 billion dollars) earlier this month to help "sound and viable" financial enterprises that are facing unexpected external shocks. Aegon is the second institution to tap that fund after ING.

    The government will nominate two supervisory board members, who will have the right to veto important decisions related to investments and remuneration schemes. They will also join the audit committee, the remuneration and nomination committee and the corporate governance committee of the supervisory board.

    All members of the Aegon executive board shall relinquish their bonuses over 2008, and Aegon shall develop a sustainable remuneration policy and limit exit schemes to one year's fixed salary, the ministry added.

    Aegon on Tuesday announced a loss of 350 million euros (448 million dollars) in the third quarter. To boost its financial position, the company said it will not pay out dividends to shareholders this year.

    The company said it needs "a more substantial buffer" to support its AA credit rating.