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Aegon Reports Net Income of EUR 358 Million in Q3 2016

THE HAGUE, The Netherlands, November 10, 2016 /PRNewswire/ --

Solid earnings supported by expense savings - limited impact from assumption changes and model updates

  • Underlying earnings of EUR 461 million[*]; realized expense savings and favorable equity markets were more than offset by the effects of adverse US mortality experience and lower interest rates
  • Limited net impact from assumption changes and model updates of EUR (81) million; all reported in other charges[*]
  • Net income of EUR 358 million; gains from fair value items offset by other charges
  • Return on equity increases to 7.7%

Sales growth driven by fee-businesses - strong gross deposits of EUR 25 billion

  • Gross deposits increase by 19% to EUR 25 billion mainly from US retirement plans and asset management. Net outflows of EUR 2.5 billion as a result of anticipated contract discontinuances in business acquired from Mercer
  • New life sales decline by 15% to EUR 219 million resulting from lower universal life sales and strict pricing policy
  • Accident & health and general insurance sales down by 5% to EUR 218 million, mainly due to product exits in US
  • Market consistent value of new business decreases to EUR 70 million due to lower interest rates and VA sales

All capital metrics continue to be within target ranges

  • Solvency II ratio declined slightly during the third quarter to an estimated 156% as a result of adverse market impacts; immaterial impact on group ratio from assumption changes and model updates
  • Capital generation of EUR 0.3 billion excluding market impacts and one-time items of EUR (0.2) billion
  • Holding excess capital stable at EUR 1.1 billion as remittances from the units offset dividends to shareholders
  • Gross leverage ratio improves to 29.5% driven by retained earnings

Statement of Alex Wynaendts, CEO

Throughout the third quarter, we further executed on our key strategic objectives by successfully reducing our costs, maintaining our strong capital position and growing our profitable fee-based businesses. At...


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