Aegon reports strong increase in earnings and capital ratio in 3Q 2017

3Q 2017 Results | AEX:AGN | NYSE:AEG

Aegon CEO, Alex Wynaendts

Net income increases by 31% driven by US

  • Underlying earnings up by 20% to EUR 556 million reflecting favorable claims experience, higher fee revenue as a result of favorable equity markets, and lower expenses in US
  • Gain from fair value items of EUR 159 million driven by positive real estate revaluations and hedging gains in US
  • Charge from assumption changes and model updates of EUR 198 million caused by conversion of the largest block of universal life business to a new model
  • Higher underlying earnings, fair value items and realized gains drive increase in net income to EUR 469 million
  • Return on equity for the quarter increases to 8.9%

Record gross deposits driven by fee-based business; outflows from contract discontinuances in Mercer block

  • Gross deposits increase by 65% to EUR 41 billion as a result of exceptionally strong asset management and UK platform deposits; net outflows of EUR 0.6 billion driven by lapses on retirement business acquired from Mercer
  • New life sales decline by 8% to EUR 202 million due to lower sales in US and exit from UK annuities
  • Accident & health and general insurance sales down by 17% to EUR 180 million from lower sales in US
  • Market consistent value of new business increases by 75% to EUR 121 million benefiting from management actions

Strong increase in Solvency II ratio to 195%

  • Solvency II ratio increases by 10%-points compared with last quarter to 195%. Capital generation and benefit from divestment of UK annuity book more than offset interim 2017 dividend
  • Capital generation of EUR 809 million including favorable market impacts and one-time items of EUR 485 million
  • Holding excess capital temporarily decreases to EUR 0.9 billion driven by capital injection into Dutch business
  • Gross financial leverage ratio improves by 20 basis points sequentially to 29.2% as a result of retained earnings

     

    Aegon 3Q Results KPIs

    All comparisons are against the third quarter of 2016, unless stated otherwise.