Aegon reports strong increase in net income in 1Q 2017

1Q 2017 Results | AEX:AGN | NYSE:AEG

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Underlying earnings up 6% driven by US expense reductions and higher fee income

Underlying earnings of EUR 488 million reflect the benefit of expense reductions in the US and higher fee income as a result of favorable equity markets, partly offset by seasonally adverse mortality experience
Fair value items of EUR (53) million due to losses on hedges in place to protect the capital position
Net income increases strongly to EUR 378 million mainly from improved fair value items
Return on equity amounts to 7.2%

Record revenue-generating investments of EUR 847 billion following Cofunds acquisition and favorable markets
Gross deposits increase by 13% to EUR 34 billion due to first time inclusion of Cofunds; net outflows of EUR 6.0 billion driven by loss of asset management contract related to previous Guardian divestment
New life sales declined by 8% to EUR 246 million, as lower sales in US and NL were partly offset by higher sales in Asia
Accident & health and general insurance sales up 5% to EUR 300 million driven by disability insurance sales in NL
Market consistent value of new business increases 30% to EUR 172 million benefiting from higher interest rates

Solvency II ratio unchanged at an estimated 157%, as capital generation offset the Cofunds acquisition and accrual for the final 2016 dividend
Capital generation of EUR 0.5 billion including favorable market impacts and one-time items of EUR 0.2 billion
Holding excess capital decreases by EUR 0.1 billion to EUR 1.4 billion driven by funding and operating expenses
Gross leverage ratio improves by 40 basis points to 29.4% as a result of retained earnings

^{All comparisons are against the first quarter of 2016, unless stated otherwise.}