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Aegon Delivers Strong Q1 2013 Results

Stocks in this article: AEG AEGN

THE HAGUE, The Netherlands, May 8, 2013 /PRNewswire/ --

  • Solid underlying earnings; net income impacted by equity hedging
  • Underlying earnings of EUR 445 million; effects of business growth and favorable equity markets offset by exits from partnerships in Spain and higher sales and employee performance related expenses
  • Decline in net income to EUR 204 million mainly due to losses on equity hedging programs established to protect the capital position
  • Return on equity decreases to 6.3%, or 7.0% excluding run-off businesses, as high net income in previous periods resulted in higher average shareholders' equity
  • Continued sales momentum in accumulation and at-retirement products
  • New life sales increase 12% to EUR 499 million; particularly strong pension sales in the UK and NL
  • Accident & health and general insurance sales increase 14% to EUR 239 million
  • Deposits 9% lower at EUR 10 billion; substantial increase in variable annuity and retail mutual fund deposits offset by lower asset management and pension deposits
  • Market consistent value of new business increases significantly to EUR 232 million, due to higher sales and improved margins as a result of product repricing and redesign
  • Strong capital position and cash flows
  • IGD a) solvency ratio stable at 224%; US RBC ratio of ~485%
  • Excess capital of EUR 1.8 billion at holding level
  • Operational free cash flow of EUR 553 million, including exceptional items of EUR 233 million

Statement of Alex Wynaendts, CEO

"Our solid results, in terms of underlying earnings, sales and our capital position confirm that our strategic priorities are the right ones. In the first quarter, the sharp rise in equity markets resulted in a loss on our equity hedging programs which impacted net income. These hedging programs have been put in place to protect our capital position, in line with our strategy to reduce Aegon's exposure to financial market risk.  The gradual improvement of financial markets resulted in impairments reaching their lowest level since the start of the financial crisis in 2008.

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