Aegon maintains solid capital ratio despite volatile markets in Q2 2016

11 August 2016 —
Underlying earnings impacted by adverse claims experience; net loss driven by UK annuity book divestment

  •     Underlying earnings amount to EUR 435 million; higher earnings from Europe more than offset by the Americas mainly due to adverse claims experience, low interest rates and lower variable annuity earnings
  •     Fair value items loss of EUR 378 million, mostly driven by the impact of low interest rates on hedging programs
  •     Net loss of EUR 385 million due to book loss on divestment of UK annuity book and fair value items
  •     Return on equity of 6.8%

Continued strong sales from deposit businesses; decline in life sales reflects continued focus on profitability

  •     Gross deposits at high level of EUR 23 billion driven by US retirement plans, asset management and savings deposits in the Netherlands; net deposits, excluding run-off businesses, of EUR 1.2 billion
  •     New life sales decline 11% to EUR 244 million as a result of focus on profitability
  •     Accident & health and general insurance sales down 9% to EUR 226 million, mainly from lower production in US
  •     Market consistent value of new business decreases to EUR 100 million due to lower life sales and interest rates

Capital position remains solid as a result of management actions; interim dividend increased by 8%

  •     Solvency II ratio increased to an estimated 158%, as capital generation and management actions, including UK annuity book divestment, offset adverse market impacts
  •     Capital generation of EUR 0.9 billion; EUR 0.3 billion excluding market impacts and one-time items
  •     Holding excess capital up to EUR 1.1 billion as net dividends received from the units more than offset capital return to shareholders and holding expenses
  •     Gross leverage ratio increases to 29.6% driven by capital return to shareholders and net loss
  •     Interim dividend increases 8% to EUR 0.13 per share; intention to neutralize dilutive effect of stock dividend
Read the full story Aegon maintains solid capital ratio despite volatile markets in Q2 2016
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