Netherlands-based insurer Aegon NV has completed the sale of its Canadian life insurance business, Transamerica Life Canada, to Wilton, Conn.-based Wilton Re for $600 million, having received regulatory approval, the firm announced on Friday.

Last October, Aegon announced a deal to sell its Canadian life insurance business to Wilton Re, which is, in turn, owned by the Canada Pension Plan Investment Board (CPPIB).

The transaction will result in a book loss of $1.2 billion, which will be recorded in the third quarter of 2015, Aegon says. When the deal was announcement, the firm said that it decided to divest the business because it did not support its goal to become a leader player in its chosen markets.

For its part, Wilton Re said that the deal fits with its strategy of serving clients in North America, and said that Toronto-based Transamerica Canada is well positioned in the middle market in Canada. The deal includes Transamerica’s portfolio of individual life, annuity, and segregated fund policies, along with its credit insurance policies; investment manager, Aegon Capital Management; and, mutual fund company, Aegon Fund Management.

Aegon will use the proceeds of the transaction to redeem its US$500 million 4.625% senior bond, which is due in December, the firms says. It adds that the combination of the divestment and the non-refinancing of the bond will improve its return on equity by approximately 40 basis points, while reducing net underlying earnings by less than 1%.