This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Stocks in this article: AEG AEGN

In the United Kingdom, AEGON has successfully implemented its new operating model and reached its target to reduce operating expenses for its Life and Pension businesses by 25% from 2009 levels. The program to restructure the business delivers GBP 80 million in expense savings, the benefits of which are visible in 2012.

In the Netherlands, AEGON is on track with reorganizing its business to be more agile and better positioned to respond to changing conditions and opportunities in the Dutch market. The reorganization program and other initiatives will result in reducing the cost base for AEGON The Netherlands by EUR 100 million, compared to the cost base for 2010. The cost savings aim to offset pressure on underlying earnings from higher mortgage funding costs, increased longevity provisioning and a declining life insurance back-book. The majority of the cost savings is expected to be achieved in 2012. To date, AEGON has implemented costs savings of EUR 49 million.

Delisting from London Stock Exchange

AEGON will make an application to delist its common shares from the London Stock Exchange (LSE) in the United Kingdom. The volume of AEGON shares traded on the LSE is negligible and does not justify the related expenses. The last trading date will be announced once the application to delist has been accepted by the LSE. AEGON shares will remain listed on Euronext Amsterdam and the New York Stock Exchange.

    FINANCIAL OVERVIEW c)
 
    EUR millions                             Notes  Q1 2012 Q4 2011   %  Q1 2011    %
 
    Underlying earnings before tax
    Americas                                            292     316  (8)     336  (13)
    The Netherlands                                      79      75   5       81   (2)
    United Kingdom                                       29     (26)  -       12  142
    New markets                                          88      65  35       68   29
    Holding and other                                   (63)    (84) 25      (83)  24
    Underlying earnings before tax                      425     346  23      414    3
 
    Fair value items                                    156     (20)  -      (85)   -
    Realized gains / (losses) on investments             45      49  (8)      91  (51)
    Impairment charges                                  (41)    (94) 56      (62)  34
    Other income / (charges)                            (17)   (194) 91       (3)   -
    Run-off businesses                                   (2)      1   -       22    -
    Income before tax                                   566      88   -      377   50
    Income tax                                          (45)     (7)  -      (50)  10
    Net income                                          521      81   -      327   59
 
    Net income / (loss) attributable to:
    Equity holders of AEGON N.V.                        521      79   -      327   59
    Non-controlling interests                             -       2   -        -    -
 
    Net underlying earnings                             328     253  30      333   (2)
 
    Commissions and expenses                          1,399   1,684 (17)   1,513   (8)
    of which operating expenses                  11     781     872 (10)     837   (7)
 
    New life sales
    Life single premiums                              1,160   1,876 (38)   1,726  (33)
    Life recurring premiums annualized                  329     311   6      328    -
    Total recurring plus 1/10 single                    445     498 (11)     501  (11)
 
    New life sales
    Americas                                     12     120     109  10      105   14
    The Netherlands                                      32     117 (73)      65  (51)
    United Kingdom                                      213     189  13      247  (14)
    New markets                                  12      80      83  (4)      84   (5)
    Total recurring plus 1/10 single                    445     498 (11)     501  (11)
 
    New premium production accident and health 
    insurance                                           195     188   4      159   23
    New premium production general insurance             14      13   8       13    8
 
    Gross deposits (on and off balance)
    Americas                                     12   7,392   5,009  48    5,629   31
    The Netherlands                                     560     560   -      462   21
    United Kingdom                                        8       9 (11)      19  (58)
    New markets                                  12   3,083   1,522 103    1,267  143
    Total gross deposits                             11,043   7,100  56    7,377   50
 
    Net deposits (on and off balance)
    Americas                                     12   1,061    (886)  -     (233)   -
    The Netherlands                                    (185)   (160)(16)    (115) (61)
    United Kingdom                                       (1)      1   -        2    -
    New markets                                  12   1,364     108   -   (1,719)   -
    Total net deposits excluding run-off 
    businesses                                        2,239    (937)  -   (2,065)   -
    Run-off businesses                               (1,160)   (611)(90)    (880) (32)
    Total net deposits                                1,079  (1,548)  -   (2,945)   -

OPERATIONAL HIGHLIGHTS

4 of 11

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,901.13 +96.33 0.54%
S&P 500 2,071.59 +0.94 0.05%
NASDAQ 4,771.9140 +6.5340 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs