Aegon 1Q Underlying Pretax Profit Up 7%; Below Expectations
12 May 2016 - 4:18PM
Dow Jones News
By Ian Walker
Dutch insurance firm Aegon N.V. (AGN.AE) on Thursday reported a
7% rise in underlying earnings before tax for the first quarter of
2016, which was below expectations.
The multinational life-insurance, pensions and asset-management
company, headquartered in The Hague, said underlying earnings and
net income for the first quarter were hurt by volatile financial
markets, which also had an impact on its capital position.
The company's solvency II ratio, a measure of financial
stability, stood at 155% on March 31. The solvency ratio is a
measure of risk that an insurer faces on claims it can't
absorb.
For the quarter ended March 31, underlying earnings before
tax--which strips out exceptional and other one-time items--was 462
million euros ($527.6 million), compared with EUR432 million a year
earlier. That compared with consensus estimates of EUR485 million,
taken from the company's website, which was based on 13 analyst
forecasts.
Net profit for the quarter fell 51% to EUR143 million, compared
with consensus forecasts of EUR329 million.
The company previously set a 10% return-on-equity target by
2018. This is expected to be achieved by reducing annual operating
expenses EUR200 million by the end of 2018, as well as an extra
EUR50 million a year in investments in digital capabilities and
expertise.
"By transforming our businesses we aim to become a more
cost-effective organization, while continuing to grow and diversify
our customer base across all our markets. This is leading to very
strong deposits, especially in our fee-based retirement plan and
asset management businesses," Chief Executive Alex Wynaendts
said.
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
May 12, 2016 02:03 ET (06:03 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Aegon (EU:AGN)
Historical Stock Chart
From Apr 2024 to May 2024
Aegon (EU:AGN)
Historical Stock Chart
From May 2023 to May 2024