Amsterdam - The share value of Dutch insurer Aegon dropped sharply on Tuesday to 2.92 euros (3.63 dollars), down 13.73 per cent, just before closing time.

The sharp drop followed an initial increase in share value of more than 6 per cent at the start of the trading day on the Dutch stock exchange.

The early rise came as traders responded to a statement released by Aegon and the Dutch Finance Ministry shortly before trading began, stating that the company would receive 3 billion euros (3.7 billion dollars) in support from the Dutch state.

In exchange, the Dutch state will receive Aegon shares at a value of 4 euros per share, above the 3.38 euros Aegon was worth at closing time on Monday.

The Dutch state is to receive 8.5 per cent interest on its investment and will also appoint two people to Aegon's board.

Until October 10 next year, Aegon can repurchase one third of the shares sold to the state for between 4 and 4.52 euros per share.

The remaining shares can be repurchased from the state at any moment for 150 per cent of the share value.

Aegon is the second financial company to receive support from the 20-billion-euro fund made available for banks and insurers by the Dutch government following the credit crisis.

Previously, Dutch bank and insurance giant ING received 10 billion euros from the same fund.

Aegon also released its third-quarter results on Tuesday. The company suffered a net loss of 350 million euros, due to write-offs of some 400 million euros. dpa