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AEGON Delivers Strong Earnings Growth And Increased Value Of New Business

THE HAGUE, The Netherlands, November 8, 2012 /PRNewswire/ --

  • Higher earnings driven by growth, lower expenses and favorable currency movements
  • Underlying earnings increase to EUR 472 million, including a positive effect of EUR 17 million as one-time provision releases were partly offset by the negative effect of assumption updates
  • Net income of EUR 374 million driven by higher underlying earnings, lower impairments and the non-recurrence of charges in the comparable quarter last year partly offset by higher taxes
  • Return on equity increases to 7.7%, and 8.6% excluding run-off businesses

To view the Multimedia News Release, please click:

http://www.multivu.com/mnr/58637-aegon-quarter-3-results

  • Sales stable - higher accident & health sales offset by lower deposits
  • New life sales level at EUR 405 million; strong sales in the US offset by NL, UK and Spain
  • Accident & health sales increase 24% to EUR 190 million driven by growth in the Americas
  • Deposits decline 10% to EUR 9.4 billion, reflecting lower stable value deposits
  • Market consistent value of new business increases strongly to EUR 173 million as a result of product repricing and improved margins
  • Continued strong capital position and cash flows
  • Capital base ratio of 75.0%, in line with target of at least 75% by year-end 2012
  • IGD a) solvency ratio increases to 222%
  • Operational free cash flow of EUR 448 million, excluding market impact of EUR (407) million

Statement of Alex Wynaendts, CEO

"During the third quarter, we were again able to capture the benefits of AEGON's strategic priorities, resulting in solid earnings growth, improved profitability of sales, lower expenses and a continued strong capital position. Our franchise remains healthy, as evidenced by the particularly high level of At-Retirement and pension sales. At the same time, we are making essential investments to reshape our businesses in both our established and developing markets to respond effectively to the changing conditions and new realities. Although there are signs of gradually improving market conditions, there remains considerable uncertainty in the general economic environment. Consequently, we believe it is prudent and necessary to maintain a sufficient financial buffer while at the same time adhering to our strict risk and pricing discipline. The steps we are taking across our organization to get closer to our end customers, combined with the strength of our current position, give us full confidence in the prospects for our business going forward."

    Key performance indicators
 
                                                   Q3    Q2        Q3       YTD   YTD
    amounts in EUR millions b)            Notes  2012  2012   %  2011   %  2012  2011   %
 
    Underlying earnings before tax            1   472   443   7   361  31 1,340 1,176  14
 
    Net income                                2   374   254  47    60   - 1,149   791  45
 
    Sales                                     3 1,550 1,604 (3) 1,620 (4) 4,912 4,292  14
 
    Market consistent value of new business   4   173   117  48    93  86   415   351  18
 
    Return on equity                          5  7.7%  6.8%  13  6.8%  13  7.0%  7.4% (5)

STRATEGIC HIGHLIGHTS

  • Aegon launches a new online banking platform in the Netherlands
  • Workplace Savings platform launched in the United Kingdom
  • Aegon regains its place in the Dow Jones Sustainability European Index

Aegon's ambition

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