Content area
Full Text
AEGON NV is distinctly bullish about its performance.
CEO Alex Wynaendts told analysts: "We have had a very strong first half and we are gaining market share."
The underlying performance was positive. Second-quarter underlying earnings rose 10%, impairments remained low and sales increased thanks to "strong pension and asset management deposits."
Sales in the U.S., the key territory for AEGON, were strong in pensions, asset management, accident, and health and life. An interim dividend was announced, reflecting "healthy cash flows" and an improving capital position.
"If you look at the sales, you see a continued improvement in the trends, particularly in the deposit area, pension business in the U.S., asset management. ... This core part of our business is continuing to grow very well," Wynaendts said.
Nevertheless, the underlying figures were not quite as strong as they might seem. Wynaendts admitted that "of the 10% increase [in underlying earnings] we have about 9% of favorable currency effect. ... [W]e are also having growth, but part of the growth is [offset by] running off or de-emphasizing our fixed annuity business."
The figures were hit by a one-off charge of [euro]265 million attributable to the already announced decision to improve unit-linked policies in the Netherlands. "It is part of our commitment to ensuring we are best in class in the Netherlands," Wynaendts stated. It was, however, a move led by the Dutch government.
AEGON's figures were broadly in line with consensus and therefore well-received. The shares rose by 5% at one stage Aug. 9.
Michael Van...