During the company's Analyst & Investor Conference, which begins later today in London, CEO Alex Wynaendts will detail the actions underway across Aegon's businesses to deliver on its strategic transformation.
Central to Aegon's strategy is connecting better and more frequently with customers to serve their broader financial needs. Mr. Wynaendts and senior management from the United Kingdom, the Netherlands and the United States, as well as the Central & Eastern European region and Aegon's asset management unit, will outline plans to drive business growth in its chosen markets, ensure a customer-centric approach and create greater operational efficiency across the organization.
CFO Darryl Button will outline the company's disciplined capital management policy aimed at reducing financial leverage, supporting the continued payment of attractive dividends to shareholders, and making possible strategic initiatives. Mr. Button will announce Aegon's intention to neutralize the dilutive effect of stock dividends going forward by repurchasing Aegon shares on the open market.
Management will also update analysts and investors on the company's progress toward its 2015 financial targets. Aegon is on track to achieve its target to double the proportion of earnings generated from fee-based business to 30-35%, as well as its aim to achieve operational free cash flows of between EUR 1.3 and 1.6 billion by 2015. In light of the historically low interest rate environment, Aegon is currently on a trajectory to deliver an increase in underlying earnings before tax of between 4-7% over the period 2010-2015 and 7-10% from 2012 to 2015. With regard to its return on equity target, Aegon is currently on a path to achieve a return on equity of between 8-10%, assuming current reinvestment yields until 2015, and taking into account the recent preferred share transaction and further capital deleveraging. Management, however, affirms its ambition to achieve a return on equity of 10-12% and recognizes that additional actions are required to do so.
In recent years, Aegon has carried-out a broad restructuring of its businesses in the United Kingdom, the United States and the Netherlands to create a more efficient and responsive organization, better positioned to succeed in light of regulatory changes, demographic and customer behavior developments. It continues to be Aegon's ambition to become a leader in each of its chosen markets, defined as being the most recommended among customers, business partners and the preferred employer in its sector.
The conference presentations will be available at 8.30 am GMT / 9.30 am CET on Aegon's corporate website. The presentations will also be webcast live on the website beginning at 8.45 am GMT / 9.45 am CET.