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TheStreet Open House

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

Stock quotes in this article: AEG, AEGN

"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

STRATEGIC HIGHLIGHTS

  • 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

Sustainable earnings growth with an improved risk-return profile

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 ambition 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.

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