* Dutch government to provide 3 billion euros capital

* Final 2008 dividend scrapped, Q3 loss of 350 million euros

* Shares flat in early trade in Amsterdam

(Adds CEO, analyst comments, shares)

By Reed Stevenson

AMSTERDAM (Reuters) - Dutch insurer Aegon (AEGN.AS: Quote, Profile, Research) tapped into government funding on Tuesday, taking 3 billion euros ($3.7 billion) to strengthen its capital base eroded by investment losses and exposure to risky investments.

Terms of the capital funding [nLS95580], the second by a major Dutch financial company, were similar to a 10 billion euros deal struck last week between ING (ING.AS: Quote, Profile, Research) and the government, which earlier this month set aside 20 billion euros for capital injections.

Aegon, based in The Hague, will get the 3 billion euros to shore up its capital but will have to repay the government at a premium or pay a steep 8.5 percent interest rate.

Shares in Aegon, which had fallen since early September by 60 percent to lows not seen since 1993, were trading flat in Amsterdam at 3.39 euros as of 0945 GMT. The DJ Stoxx European insurance index was also flat.