"AEGON's first quarter results confirm the resilience of our franchise and that the actions being pursued by management are the right ones. It is for this reason that we look forward to resuming a dividend payment, which will be decided during our upcoming Annual General Meeting of Shareholders."
KEY PERFORMANCE INDICATORS
amounts in EUR millions b) Notes Q1 2012 Q4 2011 % Q1 2011 %
Underlying earnings before tax 1 425 346 23 414 3
Net income 2 521 81 - 327 59
Sales 3 1,758 1,409 25 1,411 25
Market consistent value of new business 4 125 71 76 121 3
Return on equity 5 6.9% 5.2% 33 7.7% (10)
For notes see full release
Sustainable earnings growth
with an improved risk-return profile
- AEGON details UK pensions reform proposition
- AEGON expands strategic partnership with Liberbank in Spain
- AEGON to delist its common shares from the London Stock Exchange
AEGON aims to deliver sustainable earnings growth with an improved risk-return profile. The following targets* have been set by the company:
- Grow underlying earnings before tax on average by 7%-10% per annum between 2010 and 2015.
- Achieve a return on equity of 10%-12% by 2015.
- Increase fee-based earnings to 30%-35% of underlying earnings before tax by 2015.
- Increase normalized operational free cash flow by 30% by 2015 from 2010 level.
AEGON believes it can achieve these targets at the lower end of the target ranges as the economic slowdown adversely affects the company's growth potential.
* Main economic assumptions embedded in targets: annual gross equity market return of 9%, 10 year US interest rate of 4.75% in 2016 and EUR/USD rate of 1.35.
AEGON's aim to be a leader in all of its chosen markets by 2015 is supported by four strategic objectives: Optimize Portfolio, Enhance Customer Loyalty, Deliver Operational Excellence and Empower Employees. These key objectives have been embedded in all AEGON businesses. They provide the strategic framework for the company's ambition to become the most-recommended life insurance and pension provider by customers and distributors, as well as the most-preferred employer in the sector.