Aegon reports strong increase in net income in 1Q 2017

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

Aegon CEO, Alex Wynaendts

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%

    Continued strong sales and improved margins

    • 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 stable at 157%

    • 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


      Aegon 1Q Results KPIs

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