Aegon reports net income of EUR 358 million in Q3 2016

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

"Aegon's Solvency II ratio remains strong and our management actions enabled us to mitigate adverse market impacts...", said Alex Wynaendts, Aegon CEO.

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