AEGON Canada Inc. and RBC Dexia Investor Services today announced they have signed a letter of intent to have RBC Dexia provide investment accounting services to AEGON Canada for its portfolio of 160 funds worth $8.5 billion.

AEGON Canada provides life insurance and investment products through its operating subsidiaries Transamerica Life Canada, AEGON Fund Management and AEGON Capital Management. Today’s announcement represents the expansion of a longstanding working relationship.

“The outsourcing of investment accounting supports AEGON Canada’s strategy of focusing on our core business, which is the manufacturing of life insurance and investment products.” says Paul Reaburn, president and CEO of AEGON Canada.

One of the key features of this relationship involves the integration of AEGON Canada’s investment accounting employees into RBC Dexia’s operation in Toronto. “We are delighted to welcome these professionals to our team at RBC Dexia. Their experience and expertise will help ensure business continuity and will contribute to the development and sharing of best practices in the years ahead,” says José Placido, CEO of RBC Dexia. said Mr. Placido.

The transition of AEGON Canada’s business is expected to begin in mid-August and be completed by the end of October 2008.