Dutch insurer Aegon raised one billion euros Thursday by issuing shares to repay part of a state investment after reporting a second-quarter loss of 161 million euros (229 million dollars). 'Aegon has completed a one billion equity euro issue via an accelerated bookbuild,' a company statement said. 'The issue was conducted ...through the sale of a combination of new common shares and existing treasury shares. 'The issue comprised 157,822,000 new common shares and 32,654,191 treasury shares of AEGON N.V. with a nominal value of 0.12 euros.' They were sold at 5.25 euros per share on Euronext in Amsterdam and at 7.50 dollars in New York. 'Aegon intends to use the proceeds of the equity issue to repay up to one billion euros of the three billion euros of core capital obtained last year from its largest shareholder, Vereniging Aegon, funded by the Dutch State,' it said. This amounted to up to 10 percent of the company's total issued shares. 'The decision to repay by December 1, 2009 is conditional on Aegons capital position and the outlook for the economy and financial markets not deteriorating materially,' said an Aegon statement. It also required the consent of the Dutch central bank. 'It has been our intention to repay the three billion euros to the Dutch government at the earliest opportunity, provided it is both feasible and responsible to do so,' the statement quoted Aegon chief executive officer Alex Wynaendts as saying. The insurer's second-quarter outcome was down from a net profit of 276 million euros in the same period of last year, mainly owing to a loss of 385 million euros incurred through the sale of its Taiwanese insurance activities. The results were worse than forecast by analysts polled by Dow Jones Newswires, who had expected a net loss of 35.1 million euros for the quarter. Aegon also reported impairments of 393 million euros, about half of which from the value of US housing market assets. 'Because of uncertain economic conditions, Aegon still expects an elevated level of asset impairments in its investment portfolio in 2009 compared with its long- term assumptions,' said the statement. Underlying earnings before tax amounted to 404 million euros, 32 percent lower than a year ago and less than the 459 million euros predicted by analysts. The company reported new life policy sales to the tune of 469 million euros, and said it had freed up 1.6 billion euros in capital in the first half of the year. It had total deposits of 5.6 billion euros and was 'well on track' to achieve a planned 150 million euro cost reduction for the year. Aegon said it would declare no interim dividend for 2009. 