AEGON: Third quarter confirms the group's new strategy efficiency

22 November 2012 — Daniela GHETU
aegon2AEGON's underlying earnings before tax increased by 31%, to EUR 472 million in the third quarter of 2012, reaching EUR 1.34 billion after the first nine months of 2012 (14% more y-o-y). At the same time, new life sales level reached at EUR 405 million. "The steps we are taking across our organization to get closer to our end customers, combined with the strength of our current position, give us full confidence in the prospects for our business going forward", stated Alex WYNAENDTS, CEO, AEGON.

Underlying earnings from New Markets, including the CEE region, increased by 52% to EUR 70 million. Higher results of AEGON Asset Management, as well as from Asia and Central & Eastern Europe were partly offset by lower underlying earnings from Spain and Variable Annuities Europe.

Total holding costs decreased 28% to EUR 50 million as a result of AEGON's Corporate Center expenses being charged, in part, to operating units as of the first quarter 2012. These charges reflect the services and support provided to operating units by the Corporate Center. Charges to operating units in the third quarter of 2012 amounted to EUR 16 million.

Net income increased to EUR 374 million as a result of higher underlying earnings and realized gains on investments, more favourable results on fair value items and lower impairments were only partly offset by higher tax charges.

"During the third quarter, we were again able to capture the benefits of AEGON's strategic priorities, resulting in solid earnings growth, improved profitability of sales, lower expenses and a continued strong capital position. Our franchise remains healthy, as evidenced by the particularly high level of At-Retirement and pension sales. At the same time, we are making essential investments to reshape our businesses in both our established and developing markets to respond effectively to the changing conditions and new realities. Although there are signs of gradually improving market conditions, there remains considerable uncertainty in the general economic environment. Consequently, we believe it is prudent and necessary to maintain a sufficient financial buffer while at the same time adhering to our strict risk and pricing discipline", resumed Alex WYNAENDTS the group's achievements in the third quarter of 2012.

View a detailed financial overview of AEGON's 3Q results here.

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