SNS Reaal gets $1.6 billion capital injection

AMSTERDAM (Reuters) - Dutch bank and insurance group SNS Reaal (SR.AS) is getting a 1.25 billion euro ($1.6 billion) capital injection from the Dutch state and its controlling foundation after booking a third quarter loss due to fresh writedowns.

The Dutch state will give 750 million euros in Tier 1 securities, while the foundation that owns 54 percent of SNS Reaal shares will inject 500 million euros, SNS Reaal said in a statement.

SNS Reaal follows larger Dutch peers ING (ING.AS) and Aegon (AEGN.AS), which took 10 billion and 3 billion euros in state support last month.

SNS Reaal, which has no exposure to U.S. subprime mortgages, said it booked a third-quarter loss of 88 million euros after a negative impact of 177 million euros of writedowns linked to the credit crisis. It was its first quarterly loss since listing in 2006.

(Reporting by Gilbert Kreijger; editing by John Stonestreet)