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AEGON Delivers Growth In Sales And Earnings; Maintains Strong Capital Position

THE HAGUE, the Netherlands, May 10, 2012 /PRNewswire/ --

 

  • Business growth, cost reductions and favorable financial markets drive higher earnings
  • Underlying earnings increase to EUR 425 million, including additional adverse mortality experience of EUR 12 million compared to Q1 2011
  • Impairments decline to lowest level in four years to EUR 41 million
  • Net income increases to EUR 521 million driven by favorable fair value items results and tax benefits
  • Return on equity of 6.9%, or 7.8% excluding run-off businesses
  • Target of doubling fee-based earnings achieved: 35% of first quarter underlying earnings from fee businesses
  • Strong increase in total sales driven by pension and asset management deposits
  • US pension sales and new asset management mandates drive 50% increase in deposits to EUR 11 billion
  • Accident and health sales increase 23% to EUR 195 million, driven by growth in the Americas
  • New life sales decline 11% to EUR 445 million; increase in US offset by lower sales in UK and Netherlands
  • MCVNB increases to EUR 125 million; product repricing as a result of low interest rates
  • Continued strong capital position and cash flows
  • IGD a) solvency ratio increases to 201%; IGD surplus capital of EUR 7.1 billion
  • Capital base ratio of 74.2%; on track to exceed minimum of 75% by the end of 2012
  • Operational free cash flow increases to EUR 805 million, including EUR 400 million of exceptional items

Statement of Alex Wynaendts, CEO

"Following a year of considerable transformation, AEGON's businesses made a strong start in the first quarter of 2012 with solid increases in sales and earnings. Our successful efforts to reduce costs across our organization have created greater focus while also contributing to higher earnings. Our emphasis on serving the growing demand for retirement planning solutions led to the substantial increase in pension deposits in the United States and our third-party asset management business succeeded in capturing a significant inflow of new business. In keeping with one of our key strategic objectives, we delivered early on our target to generate a greater proportion of earnings from fee-based versus spread-based business.

"We were pleased with the low level of impairments during the quarter, their lowest in four years. At the same time, it continues to be our priority to maintain AEGON's strong capital position in this period of continued economic uncertainty.

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