Q4 2016 Results | AEX:AGN | NYSE:AEG
[node:field_featured_media:entity:field_media_image]Strong improvement in underlying earnings driven by the Americas
- Underlying earnings up to EUR 554 million driven by strong expense management, improved claims experience and higher interest rates
- Expense savings reached an annual run rate of EUR 110 million, significantly exceeding the 2016 target
- Fair value items result of EUR (13) million as gains in the Netherlands from widening credit spreads and higher interest rates were offset by losses in the United States as a result of market volatility
- Net income of EUR 470 million driven by strong underlying earnings and one-time tax benefits
- Return on equity increases to 10.5%, and 9.1% excluding one-time tax benefits
Continued solid gross deposits; net outflows mostly from lower margin businesses
- Gross deposits of EUR 23 billion; net outflows of EUR 3.5 billion driven by outflows from Chinese money market funds and anticipated lapses on Mercer block
- New life sales amount to EUR 240 million partly driven by shift to fee-based solutions in NL
- Accident & health and general insurance sales down 5% to EUR 225 million following product exits in US
- Market consistent value of new business of EUR 118 million benefiting from higher interest rates
Solvency II ratio benefits from market movements
- Solvency II ratio increases to an estimated 159% driven by favorable spread movements and higher interest rates
- Capital generation of EUR 0.3 billion, excluding market impacts and one-time items of EUR 0.3 billion
- Review of current 75% level of loss absorbing capacity of deferred taxes to be completed before the end of the second quarter of 2017
- Holding excess capital increases to EUR 1.5 billion and gross leverage ratio to 29.9% as a result of senior debt issuance
- Final 2016 dividend per share of EUR 0.13
All comparisons are against the fourth quarter of 2015, unless stated otherwise.